Cotton, paddy, pulses support price hiked

Nagpur: The Cabinet Committee on Economic Affairs chaired by the prime minister Narendra Modi on Wednesday hiked minimum support price (MSPs) for Kharif crops of cotton, paddy and pulses. The hike, albeit small for the main cash crops of Vidarbha – cotton and paddy – at Rs50 per quintal, is modest Rs275 (including Rs200 bonus) in case of Tur and Urad.Soyabean gets only Rs40 more compared to last season.
Expectedly, farm leaders of the region were not enthused and said it was too little to bring cheer to farmers who are reeling under heavy losses in last kharif as well rabi seasons because of a weak monsoon followed by unseasonal rains and hailstorm. The hike is based on recommendations of Commission for Agricultural Costs and Prices (CACP) for kharif marketing season 2015-16 and will take effect from October 1.
The CACP takes into account the cost of production, overall demand-supply, domestic and international prices, intercrop price parity, terms of trade between agricultural and non-agricultural sectors, the likely effect on the rest of economy, besides ensuring rational utilization of resources like land and water, while recommending MSPs.
In view of a large surplus of cereals in contrast with huge deficit in pulses, the cabinet made an exception and decided to give a bonus of Rs 200/- per quintal for pulses over and above the recommendations of the CACP. This is expected to give a strong price signal to farmers to increase acreage and productivity of pulses.
“The Modi government is just carbon copy of the earlier Congress regime. MSP hike is ritualistic, not looking to the farmers’ condition,” said farm leader Vijay Jawandhiya. Hike on tur, moong, urad does not make any sense as their market prices are double the MSP, he added. “At least the government should protect farmers’ interest by imposing import duty on pulses like it is done on sugar,” said the leaders.
Kishor Tiwari of Vidarbha Jan Andolan Samiti also said it was disappointing. “Modi had said in his election campaign that farmers would be paid input costs plus 50%. This promise has not been fulfilled,” said Tiwari who too found the hike too meagre.
State cotton federation chairman N P Hirani also found nothing to bring relief to farmers in the government’s new MSPs. “Cotton prices should have been hiked at least by Rs500. The hike of Rs50 to take it to Rs4100 for best quality would not remove farmers’ stress,” said Hirani. He said Rs100 reduction in Bt cotton seeds prices was also yet to be passed on to farmers. New paddy MSP is Rs 1410, that of tur Rs 4625 (including Rs200 bonus) and moong Rs 4850.