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Resource centre on India's rural distress
 
 

Ensure fair deal for farmers -A Amarender Reddy

-The Tribune

70% India imports almost three-fourths of its annual domestic consumption of edible oils

KHARIF harvesting operations are going to begin soon. Agricultural production is likely to surpass last year’s record production by 7-8%. The higher production inevitably puts downward pressure on market prices. The problem of low harvest prices has been compounded by the steep fall in the GDP growth rate in the first quarter of 2020-21; it will reduce overall demand for the agricultural produce. Hence, ensuring the Minimum Support Price (MSP) for farmers is a gigantic task.

There are huge imbalances in the MSP operations. Various states have diverse levels of implementation capabilities. Punjab and Haryana are historically in a better position to procure at the MSP than states like Bihar and Odisha. Paddy farmers in Punjab are able to sell at the MSP, while farmers in Bihar have to settle for prices below the MSP. The focus is on paddy and wheat, with negligible procurement of pulses, oilseeds and other crops at the MSP.

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