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    MSP - Some Realities

    New Para : Procurement of Wheat as on 31 May 2021 and Commission involved

    Out of total wheat procurement of 406 lakh MT, the highest share in wheat procurement was of Punjab i.e. 132.10 lakh MT (73% of 180 lakh MT production ) followed by MP i.e. 127.08 lakh MT(61%) of 208 lakh MT),Haryana i.e. 84.93 lakh MT (73%) of 117 lakh MT production , UP i.e 39.50 lakh MT (12% of 335 lakh MT). It clearly indicates that more than 70% wheat produce of Punjab and Haryana has been procured through MSP. Only in Haryana and Punjab about Rs. 42860 crore ( @ Rs. 1975/ qtls as MSP) of wheat has been procured and amount is credited to the farmers through DBT. But interesting thing is that an amount of Rs. 1072 crore (2.5% as commission charges) has been paid as commission charges by GoI to Ardhtiyas and Commission agent. These Rs.1072 crore could have been the income for PACS (Credit Societies or Mini Bank) in place of Ardhtiyas, if procurement centres are made at PACS level instead of Mandi level. We can imagine how much storage facilities at Village level through PACS can be created. But moot question is that the Kisan leaders like Mr. Abhimanyu Kohar openely support the Ardhtiyas as service provider which means how much money out of this Rs. 1072 crore has gone to Kisan movement. That is why te so called Kisan leaders which are misleading to the farmers, never said that middlemen should be removed from procurement system. MP is making procurement through PACS and PACS has benefitted.

    Earlier Post

    Commission on April Costs and Prices (CACP) has recommended Kharif MSP on the basis of cost of production, overall demand-supply situation and price trends in domestic and world markets, inter-crop price parity, terms of trade between agriculture and non-agriculture sector, a minimum of 50 percent as margin over the cost of production, likely effect of price policy on rest of the economy and optimal utilization of land, water and other production resources. Major Crops MSPs Recommended are as under :

    Paddy-Common - 1940 & Paddy-Grade A - 1960 Jowar-Hybrid - 2738 , Bajra -2250, Moong - 7275, Groundnut - 5550, Sunflower Seed - 6015, Sesamum -7307.
    Facts can be viewed at CACP website :

    • In some rice producing States like Punjab, Haryana, and Telangana, more than 80 percent of marketed surplus of rice is procured by Government agencies, which is primarily triggered by open-ended procurement policy.
    • The Commission, therefore, reiterates its earlier recommendation that the Central Government should review open-ended procurement policy for rice and wheat and take a policy decision to procure from small and marginal farmers, who constitute 86 percent of total operational holdings, and a fixed quantity from farmers having more than two hectare farm size. Efforts should also be made to strengthen procurement operations in other major rice producing States like West Bengal, Uttar Pradesh, Assam, Bihar, etc. to meet at least the State requirements under NFSA and other welfare Schemes. ( Kindly see this recommendation of CACP which Central Govt has not followed and still procurement from more than 2 Ha is happening whereas in Punjab more than 70,000 holdings are more than 2 ha and > 40000 in Haryana and these people will be most affected and that is why Kisan movement is being led by such type of farmers.
    • Over-dependence on rice-wheat cropping system in Punjab and Haryana due to assured procurement policy has led to serious problems of groundwater overexploitation, soil fertility depletion, plateauing yields and distorted cropping pattern. (Merely increase in production through higher doses of concessionalised fertilisers and pesticides in Punjab and Haryana and then contributing in Central pool is harmful for Poor people (PDS Beneficiaries).
    • The Commission recommends that a comprehensive programme should be prepared for crop diversification in Punjab, Haryana and western Uttar Pradesh and both the Central and State Governments should fund the programme for minimum five years and provide direct incentive to farmers for crop diversification.
    • The nutri-cereals, which are climate-resilient and have high nutrient content, were a traditional staple food of the dryland regions in the country but their consumption has significantly declined over the past few decades. Some State Governments such as Odisha, Karnataka, Haryana, etc. have taken initiatives to strengthen procurement of nutri-cereals and promote household consumption through inclusion of millets in PDS and other welfare schemes.

    News24 raises only -ve points whereas recommendation of CACP are implementable and for farmers benefit.

    Dear Farmers - The data given below are authentic and from published sources. - Foodgrains Production Scenario (2020-21) & MSP Procurement system is as under :

    Total Foodgrains (Cereals + Pulses)- 303 million tonne
    Wheat and Paddy Production - 228 Million tonne ( 75% of total Foodgrains)
    Pulses - 24 Million tonne
    Other Cereals - 45 Million Tonne (Includes Bajra, Jowar, Maize, Ragi, Mandua, etc.)
    Procurement Status in 2019-20 - 51.97 million tonne paddy ( from 12 States) and 38.9 million tonne wheat ( from 5 Major States) was procured.
    Major Points

    • Wheat and paddy share is 75% in total foodgrains which means marketable surplus of other crops is not significant. 44% paddy procurement ( out of 118 million tonne of production) from 12 States (including Bihar, Chhatisgarh, TN, AP, MH,etc.) and 38% wheat procurement (out of 108 million tonne of production) from 5 States is an Indication that large no of farmers have been benefitted.
    • Only in Punjab, Haryana and Rajasthan the wheat and paddy procurement happens through APMCs(Mandi) by engaging Ardhtiyas which is unnecessarily burdening the Central Govt ( as 2.5% commission charge is given to Arthiyas) and tax payers.
    • Wheat & Paddy procurement can happen through farmers organisation like Primary Agril Credit Societies(PACS), Farmers Producers Organisations (FPOs), etc. Kisan Unions should raise this demand to the concerned State Govt. Not raising of this Demand means ???????? On the farmers leadership and their Capabilities.
    • State Govt can introduce Bajra(in Rajasthan), Maize (in MP), Jowar(in MH), etc in Fair Price Shop under PDS so that farmers of these States can get benefit of MSP of these crops.This demand should be raised by the Kisan Unions of these States. Not raising of this Demond means the leadership is incomepetent and they are playing in the hands of farmers leaders of Punjab/Haryana/UP.
    • Wheat Procurement in UP was only 7.97 lakh MT in 2016-17 which increased upto 52.94 lakh MT in 2018-19 and 35.77 lakh MT in 2020-21. Farmers of UP have started taking benefit of MSP. As UP is the largest Wheat Producer in the country so more share of UP in Central Pool may be asked by Kisan Unions which will adversely affect the share of Punjab & Haryana. That is why Farmers of Punjab & Haryana are asking for MSP assurance. Kisan leaders from UP are not asking bcoz of —————- ??????.
    • Regards
    Last edited by KJ2018; July 4th, 2021 at 10:40 PM. Reason: Bcause of New Facts

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