NAFED procuring oilseeds and pulse crop ruling below MSP

The National Agricultural Cooperative Marketing Federation of India (NAFED) has started procurement of many oil seed and pulses crops after the market prices of many of them have crashed below the minimum support price. This is under the price support scheme of NAFED.   

Already 2.33 lakh metric tonne of groundnut has already been procured from Gujarat and Rajasthan as the market prices are ruling below MSP of RS 4,000 per quintal. The market prices are ruling in the range of RS 2,955-3,000 per quintal.

Similarly, it has started procurement of gram, sunflower and tur or arhar.  

The prices of gram and tur are ruling around Rs 2,500-3,000 per quintal and Rs 3,900-4,000 per quintal as against MSP of Rs 3,000 per quintal and Rs 4,300 per quintal respectively.  However market data shows that prices of tur and gram have gone up to around Rs 6,000 per quintal and Rs 3,500 per quintal in far flung areas.

Price of sunflower is ruling around Rs 2,800-3,500 per quintal as against the MSP of RS 3,700 per quintal.  

The procurement is mainly going on in Maharashtra, Gujarat, Rajasthan and Andhra Pradesh, said sources. .

Many crops of oilseeds and pulses are ruling below MSP due to bumper crop and flat demand.  Moreover in oilseeds, much of the domestic edible oil demand is met by cheap imports of soybean refined oil.

Meanwhile, in order to facilitate efficient procurement, NAFED has urged the  State Governments to notify the crop calendar defining the size of crop, area sown, expected quantum of arrivals with peak harvest period for procurement, average yield district-wise, details of documents to be collected from farmers, etc. This would help in preparatory arrangements and commencing immediate procurement, as and when required, without any loss of time, said officials.

These suggestions were made in the interstate conference on price support scheme of kharif crops- oilseeds and pulses for 2013-14 towards end of the last year.

Besides, it has suggested an allocation of revolving funds by State Governments to their State Level Supporters to make prompt payment to farmers and creation of suitable infrastructure etc. warehouses, availability of transport at remote centres, provision of facilities for farmers to arrange inspection & up-gradation of their produce, if required, at APMCs.

Further  the states have been urged  to adequate publicise MSPs of notified crops, name of purchase centres and timely execution of agreement and the need to abolish/ reduce cess, mandi fee, VAT etc. by State Governments on PSS purchases, in order to reduce the cost to PSS operations.

In the meeting, many of the states with acreage of oilseeds and pulses had intimated the NAFED of possibilities of procurement under price support scheme as prices were expected to rule below the MSP.