Low market price hits Punjab maize farmers

Govt has announced a minimum support price of Rs 1,310 per quintal for maize but the crop is not procured by the state as there is no local consumption and thus, no support from the Centre

The prevalent low price of maize in the market may dissuade the farmers of Punjab from retaining the area under maize.

The government has announced a minimum support price of Rs 1,310 per quintal for maize but the crop is not procured by the state as there is no local consumption and thus, no support from the Centre.

As a result, the maize farmers have to sell their produce at the market price, which, at present, is between Rs 800 and Rs 900 per quintal, depending on the moisture content, for the kharif crop.

The Punjab government has been aggressively promoting the maize cultivation under its diversification of farming scheme because the consistent farming of paddy - which is procured by the state and supported by the Centre - the health of the sub-soil has been adversely affected and ground water depleted.

The state government has projected to bring 550,000 hectare under maize cultivation during the Fifth Five-Year Plan (2012-17). In 2012-13, the area under maize was 130,000 hectare; the aim was to raise it to 550,000 hectare in 2013-14.

Besides paddy, the state also has an efficient procurement mechanism for wheat. However, maize farmers are left at the mercy of private traders.

Pavitar Pal Singh Pangli, a maize grower and president of Punjab Agriculture University (PAU) Farmers' Association, said the reason for the weak market mechanism in the state was Punjab not having an industry that sustains on maize.

"The poultry units are one of the major consumers of maize but the high taxes (about 14.5 per cent) on food processing units has led to the relocation of the units from Punjab to Haryana and Andhra Pradesh," he added.

Another reason for the low market price of maize is the manual assessment of moisture content - which reduces drastically a few days after harvest - in the crop.

Disgruntled farmers said the state government should provide moisture meters in the market yards to streamline the assessment of moisture in the crop in order to save the farmers from unscrupulous traders.

The state government has installed dryers for maize at some locations. However, the transportation cost is not viable for most of the farmers.

The agriculture department is now mulling to install smaller machines at shorter distances to enable farmers to get rid of excess moisture.

Another reason of lower prices is the bumper maize crop in global markets, like the European Union and the United States.

Raju Choksi, vice-president (agro-commodities), Anil Nutrients Limited, said the abundant global supply will also impact exports from India.

"India's exports have declined to 2.5 million tonnes in 2013-14 from 4.7 million tonnes a year ago. The Indian produce is priced higher, so the fall in export will continue unless we can compete on the price."

The spring maize would be sowed in February. Under the prevailing conditions, farmers are unlikely to increase the area for the crop.