Government needs to prove the usefulness of support price through adequate procurement

21-Jun-2024 06:50 PM

New Delhi. The Central Government has once again increased the minimum support price (MSP) of Kharif crops, due to which farmers can be expected to get better income,

but experts say that this will be possible only when the government purchases all the 14 crops from the farmers whose support price has been increased.

The purpose of determining MSP must be fulfilled. Often the market price of various commodities falls below the minimum support price and then due to lack of government procurement,

farmers suffer huge losses. Government procurement is limited to a certain quantity and fixed period. This rule is applicable for other crops except paddy and especially pulses, oilseeds and coarse grains. Only paddy and to some extent cotton are procured in a better manner.

The Executive Director of Solvent Extractors Association of India (C) says that just declaring the minimum support price will not benefit the farmers but it is also important for the government to ensure that the farmers get the support price for various crops.

Whenever the market price falls, the government should immediately become active for its purchase. Sometimes the price of commodities falls due to excess stock and sometimes due to weak demand. At such a time, there is a need to start government procurement to protect the farmers from loss.

It is noteworthy that for the 2024-25 season, the government has increased the support price of Kharif crops from 1.4 percent (moong) to 12.7 percent (nigerseed) as compared to 2023-24.

A maximum of 25 percent production is fixed for the purchase of pulses and oilseeds crops. That is, one-fourth of the estimated production in a state can be purchased at the support price.

Its time limit is also fixed from 60 to 90 days. Farmers no longer trust MSP, so they leave one crop and get attracted towards another crop. This is likely to have an adverse effect on production.