Patna: Former MP Sharad Yadav has dubbed the hike in Minimum Support Price (MSP) for the common variety of paddy, announced by the Centre on Wednesday, as a "meaningless exercise in the absence of a strong food grain procurement system".
In a statement issued on Thursday, Sharad quoted from a report by a committee led by former Union minister of food procurement Shanta Kumar. The report said only 6 per cent of farmers benefit from MSP.
"The government is nervous about all matters, including issues of farmers in the country," Sharad said. "MSPs of different crops are being raised more than in the last four years... after seeing record suicides by farmers in this regime. In my opinion, unless the procurement system of different crops is revamped and made robust, farmers will continue to make distress sales." He said that during his 10-day stay in Bihar, he found farmers selling paddy at Rs 1,200-1,300 per quintal when MSP is Rs 1,550. Similarly, maize was selling at less than Rs 850-900 per quintal, whereas current MSP is Rs 1,425.
In case of moong (green gram), he said farmers were selling it at Rs 3,000-3,500 per quintal when MSP is Rs 5,575. "I've been visiting many states but the procurement of different crops from the farmers is the same, except in states like Punjab and Haryana," Sharad said. "Procurement agencies procure as per requirement under PDS and the government is not concerned about small and poor farmers. Therefore, announcing any increase in MSP is meaningless and just like a ritual. It may also be mentioned that the increase in MSP is not at all sufficient and farmers will not be able to meet production cost from it."
He said the procurement system needs to be strengthened and middlemen removed as farmers take advances from them and sell their crop through them. "If our procurement agencies are active and practical, farmers will prefer to come to them before going to these middlemen," Sharad said.
"I agree with the report of the high level committee under Shanta Kumar, which makes it abundantly clear that only 6% of our farmers benefit from MSP while the rest are deprived of it. In view of the above, I urge the government to see that the procurement system is strengthened as otherwise any increase in MSP will just be an eyewash."
