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Farmers feel Narendra Modi government falls short on crop prices

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Four months after Narendra Modi government assumed charge at the Centre, farmers are disappointed that it hasn't significantly changed the minimum price for their crops, leaving them to the mercy of traders.

The minimum support price (MSP) is a promise by the government to purchase crops from farmers, ensuring against any distress sale of their produce and this is implemented through state agencies.

What is the farmers' grouse?
The MSP is notified by the Centre ahead of the crop season and the new government had revised the prices by Rs50-Rs200 (per quintal) a couple of months ago.

However, farmers complain that the revised prices still do not meet their input costs, even as market prices have slipped below these support levels.

According to official data, the market price of maize is currently at around Rs1,200 a quintal, while the MSP is Rs1,310; the market price of channa (gram) is at around Rs2,850 and the MSP is Rs3,100; and the market price of urad dal (black gram) is at Rs4,100 while the MSP is Rs4,350.

How serious is the issue?
In the case of cotton, the market price has dropped to about Rs3,000 while the MSP is Rs4,500. There is no support price for onions that are currently at Rs1,200 a quintal against Rs4,576 at around the same time last year.

The problem over cotton is particularly severe as imports by textile units have been rising and are expected to hit a 12-year high.

Farmers admit that prices of cotton purchased from markets in Africa and Australia are lower than that grown in Maharashtra or Gujarat. But they are disappointed that the government has done nothing to arrest the drop in domestic prices.

What are farmers' expectations?
Tukaram Patil, a big cotton grower in Dhule, explained that the support price should be fixed taking into account the rise in input costs. "If farmers cannot recover their costs naturally they will be in distress and this leads to suicides. We had a lot of expectations from the Modi government but it hasn't done much," Patil said.

Another farmer pointed out that the government could have initiated early procurement by the Cotton Corporation of India and the National Agricultural Cooperative Marketing Federation (NAFED) before growers are compelled to sell to traders. Also, the government could hike the duty to restrict imports, while taking steps to promote exports.

What did Modi promise?
Vijay Jawandhia, a farmers' leader in Vidarbha, told dna: "When Modi visited China and the US he should have enquired why farmers there do not commit suicide when prices of crops go down. It's because their governments protect them through huge subsidies and insurance. Not so in India." He said Modi had promised a change in the calculation of MSP and a hike of at least 50%. But this hasn't happened.

Nanasaheb Patil, chairman, Agriculture Produce Market Committee, at Lasalagon said the government continued to import onions even after supplies to domestic markets had revived. "The prime minister aims to make India number one. But how can this be achieved if a large section engaged in agriculture are not empowered?" Patil asked.

NOT GOOD ENOUGH
Crop MSP Market price (in Rs)

Maize 1,310 1,200
Chana 3,100 2,850
Urad dal 4,350 4,100
Cotton 4,050 3,750

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