Ahead of polls, 3 states announce big procurement plans for kharif crops

State govt has also lowered mandi fees to Rs1.50 for a transaction of every Rs100 against earlier fees of Rs2/100

Just days ahead of the formal announcement of poll dates on Saturday, the Madhya Pradesh, Chhattisgarh and Rajasthan governments, along with the Centre, had unveiled big procurement plans for kharif crops by way of higher allocation. 

Chhattisgarh, Madhya Pradesh and Rajasthan will go to polls from November 12 to December 7.

The Madhya Pradesh government, in a notification, has announced that it will spend almost Rs 65 billion to either directly purchase oilseeds and pulses from farmers or pay the price difference between a modal rate and the minimum support price (MSP) under its Bhawantar Bhugtan Yojana (BBY). 

Registrations of farmers under both the schemes have already started and the purchase process will begin from October 20. 

State officials believe that of the 4.5 million oilseeds and pulses farmers in the state, around 60 per cent or 2.6 million have registered for both the programmes and around 4.2 million tonnes of pulses and oilseeds, including soybean and maize, will be purchased in the next few months. 

It plans to give a flat Rs 500 per quintal as deficit finance to soybean and maize farmers of the state under the Bhawantar Bhugtan Yojana (BBY) to compensate for their loss from sale.

Apart from that, the Cotton Corporation of India (CCI) will purchase cotton from around 175,000 MP farmers for which it has opened purchase centres in eight districts. 

Market intervention has been necessitated as the price of almost all kharif crops, including groundnut, urad, moong, sesame seeds, soybean, maize and cotton have fallen below their state mandated minimum support price (MSP). 

The state government has also lowered mandi fees to Rs 1.50 for a transaction of every Rs 100 against the earlier fees of Rs2/100. This will also reduce the operational cost of farmers.

For neighbouring Rajasthan, the Centre on Friday had okayed a purchase plan to buy around 750,000 tonnes of groundnut and soybean at a price of over Rs 31 billion.

In Chhattisgarh, the Raman Singh government had announced that it would provide cheap water to farmers for cultivating summer rice, which is considered an additional source of income for them after the kharif rice harvest.

Last year, the state banned growing of summer rice due to drought in several districts but this year there isn’t any such issue. It is also upping procurement of kharif rice for which it has already declared a special incentive of Rs 300 per quintal over and above the MSP for kharif 2018-19. 

With the inclusion of bonus, farmers in the state will be eligible to get Rs 2,070 for each quintal of A-grade paddy that the government will procure.

For the common-grade quality, an eligible seller will get Rs 2,050 per quintal. The state has set a target to procure 7.5 million tonnes of paddy in the kharif marketing season of 2018-19. 

India’s overall kharif grain production in the 2018-19 crop year, which started in June, is projected to touch an all-time high of 141.59 million tonnes (mt), a growth of 0.6 per cent over last year despite an almost 10 per cent shortfall in monsoon. This is because the rains were well-distributed and timely. 

According to the first advanced estimate for 2018-19 kharif crops, the country’s rice production is estimated to be 99.24 mt, which is 1.79 per cent more than the kharif production of 2017-18. The 2017-18 production was according to the fourth advanced estimate. 

Coarse cereals output is estimated to be 33.13 mt, around 2.24 per cent less than the fourth advanced estimate of last year. 

Pulses production is projected to drop marginally to 9.22 mt from 9.34 mt last year due to the fall in moong, urad and tur output. 

The drop is due to the shift in acreage towards soybean in some parts of Madhya Pradesh and Maharashtra. 

The country’s total acreage under kharif crops in 2018-19 is estimated to be nearly one per cent more than the area covered last year.

Support to farmers

• MP starts procurement of oilseeds and pulses directly and under Price Deficit Financing Scheme
• Plans to support about 60 per cent of the 4.5 million oilseed and pulse farmers
• In Rajasthan, the Centre starts groundnut and soybean procurement under Price Support Scheme
• In Haryana, bajra procurement also begins
• Intervention has been necessitated as prices of almost all major kharif crops have crashed