Minor MSP hike for Wheat and Pulses

Govt, on the recommendations of CACP proposed a raise in the MSP of Rs 20 per quintal to wheat at Rs 1,120 and pulses, including safflower and lentils (masur), by up to Rs 380 per quintal. MSP is the price that government pays to farmers while procuring their produce. The centre procures wheat and rice directly from farmers for the public distribution system. CCEA appro­ved MSPs of fair average quality (FAQ) of rabi crops of 2010-11 to be marketed in 2011-12 season. MSP for barley has been increased by Rs 30 to Rs 780, and gram by Rs 340 to Rs 2,100. Procurement price for masur has been raised by Rs 380 to Rs 2,250. Prices of mustard seed and safflower have been increased by Rs 20 and Rs 120 respectively.

India, the world's largest producer of pulses, imports nearly 4 million tonnes to meet its domestic demand of 18-19 million tonnes. Area under pulses cultivation has been declining over the last few years and the demand-supply gap has kept prices at an elevated level. The agriculture ministry is aiming to increase pulses production to 16.5 million tonnes in 2010-11 from about 14.59 million tonnes the previous year. Higher support prices for kharif pulses had resulted in a sharp jump in acreage, and production is estimated to rise to 6 million tonnes in the kharif season of 2010-11as against 4.3 million tonnes a year ago. According to officials, in case of cereals Food Corporation of India and other designated state agencies would continue to provide price support to farmers as in the past. Co-operative major Nafed will continue to be the nodal agency for procurement of oilseeds and pulses.

With this increase in the support prices, particularly for the wheat, the so called foodgrain of the country, aka Punjab is not at all happy and cries foul over the low hike for the fiscal. The Punjab CM has termed it as, cruel joke with the farming community and expressed farmers have expected better hike this season, owing to the sharp increase in the prices of farm inputs, seeds, pesticides, fertilizers ets. The farm experts of the state feels cheated by the Govt action, as over the time, the state has gone handicapped and now solely depends upon the centre’s procurement and pricing policy, followed for rice and wheat, as the most of the harvest is taken away by the state farm corporations. Everytime, the support prices, gets revised either they lobby for more hike every year or, go to the extent of threatening over the short supply of grains. But the real problem, still remained unanswered before the Indian agriculture, till when we’ll keep on waiving such obnoxious deal, which has almost turn sore for the national food security.