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Madhya Pradesh: Compensation scheme for farmers falls prey to trader cartels -Sayantan Bera

-Livemint.com

Madhya Pradesh government had launched the compensation scheme to ensure that farmers receive minimum support price for pulses and oilseeds

New Delhi:
An ambitious scheme launched by the Madhya Pradesh government to ensure that farmers receive minimum support prices (MSP) for pulses and oilseeds is falling prey to trader cartels, suggest price data from wholesale markets and testimonies by farmer organizations.

Following a sharp fall in crop prices over the past year which fuelled farmer protests in Madhya Pradesh since June, the state government launched a price deficiency scheme earlier this month which directly compensates farmers when they sell their produce below MSP set by the government.

Named Mukhya Mantri Bhavantar Bhugtan Yojana, the deficit price payment scheme saw an impressive enrolment of over 1.9 million of the 6.5 million growers of oilseeds and pulses in the state.

However, after wholesale prices of crops fell sharply over October, the government could end up spending more than the Rs4,000 crore estimated earlier.

Data on wholesale prices shows that last week, black gram or urad was sold in wholesale markets in Madhya Pradesh at prices between Rs2,300 to Rs2,800 per quintal, substantially lower than the MSP of Rs5,400 per quintal. The same pulse variety sold in Uttar Pradesh and Rajasthan between Rs3,500 to over Rs4,000 per quintal, lending credence to allegations by farmers that traders in Madhya Pradesh are colluding to lower prices.

For soybean, a major oilseed grown in the state, despite an estimated 12% drop in production in 2017-18 year-on-year for the entire country, wholesale prices are around Rs2,500 per quintal, lower than the Rs2,800 per quintal in end October last year and the MSP of Rs3,050 per quintal.

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