Wheat MSP rise: No field day, say farmers

Being an election year, the farmers were expecting a significant revision in the minimum support price, in line with inflation

The farmers of Punjab and Haryana, backbone of the country's food procurement, are dismayed at the Centre's decision to revise the minimum support price (MSP) of wheat by Rs 50 a quintal for rabi 2014.

Being an election year, the farmers were expecting the government to revise the price in line with the rising input costs.

Pavitarpal Singh Pangli, president, PAU (Punjab Agricultural University), Ludhiana Kisan Club, said PAU and Punjab State Agriculture Department had recommended an MSP of Rs 1,855 a quintal. "The increase in the cost of diesel, fertilisers and labour wages have burdened the farmers. So, at least a Rs 500 revision was needed."

He added a protein-based price of wheat should be introduced to provide better remuneration in Punjab, Haryana, western Uttar Pradesh and parts of Madhya Pradesh. "This is followed internationally."

"Instead of a blanket price across India, the high-protein wheat should be seggregated from the low-protein one. This could encourage farmers to grow better wheat."

Jagtar Singh Mehma, a farmer in Bhatinda, Punjab, said the perception created by the Centre regarding remuneration and inflation was not logical. "The farmer community is highly indebted in India and a higher remuneration is a must. There is no correlation between inflation and rationalisation of MSP".

Mehma said besides input costs, the lease rate of land in Punjab had been increasing.

"Majority of the fields in Punjab are ploughed by tenants. Since the opportunity cost of land is high in Punjab, big landlords revise the lease rate a year. A farmer in Punjab pays Rs 40,000 an acre of rent. This is not added to the cost by the Commission of Agriculture Cost and Price."

"The investment in farming by farmers in Punjab and Haryana is very high due to low water table and depleting nutrients."