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LATEST NEWS UPDATES | More than 60% markets sell agricultural produce below MSP -Jitendra

More than 60% markets sell agricultural produce below MSP -Jitendra

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published Published on Oct 25, 2018   modified Modified on Oct 25, 2018
-Down to Earth

The price of cereal, paddy and oilseed has crashed in more than 1,700 markets, according to government data

On a vast farmland in Kalajhar mandi of Sangrur district, Punjab, farmers are waiting to negotiate with traders who have rejected their paddy crop infected due to humidity.

Chand Singh, 70, a farmer who owns 4 hectares of farmland in Kalajhar village, says traders rejected 20 tonnes of paddy that he cultivated as it was affected due to humidity. “If traders don’t accept it, I will have to sell it to a private agent at a much lower price than the Minimum Support Price (MSP).”

In July 2018, the MSP of paddy was Rs 1,750 per quintal but agents are paying only Rs 1,300-1,400 per quintal. The MSP is set by the Commission for Agricultural Costs & Prices (CACP) to incentivise the cultivators to adopt modern technology and raise productivity while being assured of a particular income.

Due to a longer spell of monsoon at September-end, humidity has affected paddy crops. This may mean that many farmers like Chand Singh may not be able to sell their crop. In the past three weeks, the price of paddy has reportedly dipped below MSP in more than 300 designated markets in India. In more than 60 per cent of designated markets in the country, the prices of cereals, oilseeds and pulses are much lower than MSP.

The market price of major agricultural produce has crashed below MSP, according to Agmarknet, a government agriculture market portal, that records data of more than 2,700 markets. Out of these 2,700 markets, the price has crashed in more than 1,700 major markets for commodities like cereals, pulses, oilseeds and cotton between October 1 and October 21.

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Down to Earth, 23 October, 2018, https://www.downtoearth.org.in/news/agriculture/more-than-60-markets-sell-agricultural-produce-below-msp-61921


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