Ensuring remunerative crop prices a challenge for govt

By P.K. Jha

New Delhi, Oct 30 (SocialNews.XYZ) The Modi government, which aims to achieve its goal of doubling farmers' incomes by 2020, is finding the issue of ensuring a proper remunerative price for crops a major challenge.

It is generally seen that farmers take interest in those crops which they hope will fetch them attractive returns and the produce of these crops increases, but it do not fetch them a proper price.

For example, in this year's kharif season, cotton was considered the crop of choice. Cotton has started coming to the markets but it is seen that it is being sold there at an average of Rs 400-500 below the government-set Minimum Support Price (MSP). However, those crops, whose produce is lesser, sell for above the MSP. An example is maize, which is selling for twice of last year's rate.

In this situation, it is crucial to see how farmers can get proper prices for crops which are produced in larger quantities, despite the government regularly raising the MSPs.

Agricultural experts say that this will only be possible when government ensures that crops are sold at the MSP throughout the country, but for this, the necessary basic facilities are not available in all the states.

Agricultural economist Devender Sharma told IANS that the Shantakumar Committee's report had said that throughout the country, only six per cent of the farmers get the benefit of selling at the MSP level.

He said that apart from wheat and paddy, very little quantity of other crops are bought by the government, and even for wheat and rice, the total government off-take is only 30 per cent.

According to Agriculture Ministry statistics, the production of paddy and wheat last year was 11.64 crore tonnes and 10.21 crore tonne, respectively. Food Corporation of India statistics reveal that of this, the government purchased 4.43 crore tonnes of paddy and 3.41 crore tonne of wheat.

Sharma agreed that ensuring proper prices was a challenge for the government, stressing that unless this was achieved, the goal of increasing their income would remain elusive.

He said that at this point, there are 7,600 Agriculture Produce Marketing Committee (APMC) mandis in India, whereas to ensure a mandi in five kilometre radius will need around 4,200 mandis to be set up.

Agricultural and business law expert Vijay Sardana said that apart from ensuring the proper functioning of the APMC markets, the involvement of farmers in them must be increased and then only will they get proper prices for their produce. He said this will end the dominance of traders and farmers will get the option of MSP, which eludes most farmers.

According to Sardana, the benefit of MSP is not available to 10 per cent of Indian farmers.

However, an Agriculture Ministry official said that if agriculture produce is not bought by the government at the MSP, then the farmers will not be able to get the prices they get when the crop is getting ready.

Meanwhile, an Agricultural and Processed Food Products Export Development Authority (APEDA) official maintained that due to the high MSPs, Indian agricultural produce is not competitive in the international market, and thus, this affects its exports.

Renowned economist Arun Kumar also maintained that along with increasing agricultural production, it is vital that the farmers get proper prices for it, so that their income increases and the rural economy is strengthened.

Talking to IANS, he said that increasing kharif and rabi produce will no doubt bolster the rural economy, but the condition is that farmers get proper prices and this can only be achieved by ensuring they are paid as per the MSP.

Source: IANS