Chandigarh, October 12
Substantial increase in the minimum support price(MSP) of wheat and paddy this year is likely to prove a life-saving dose for Punjab’s sagging agricultural economy. According to a rough estimate, the increase in the price of wheat and paddy will pump Rs 4,500 crore into the state’s agricultural economy in a period of nine months, starting from September this year to May next year.
It is a fact that urban economy is dependent to a large extent on the agricultural economy, especially in the cities and towns having no industrial and manufacturing base worth mentioning. A few more such life-saving doses can pull out Punjab’s farm sector from the crisis it is facing at the moment.
MSP of paddy, that is being procured now, was raised by Rs 65 per quintal by the Union Government before the procurement season this year. “A” grade paddy’s MSP was Rs 610 per quintal last year. And the government had given Rs 40 per quintal as bonus on it, making it Rs 650 per quintal. However, this year the MSP of paddy has been raised to Rs 675 per quintal and Rs 50 per quintal is given bonus over and above MSP of paddy, thus raising the market price to Rs 725 per quintal.
Last year, 137 lakh tonnes of paddy had arrived in the mandis of Punjab. This year it is expected to go up to 140 lakh tonnes. Financial gain to farmers from the increase in price( Rs 65 MSP+ Rs 50 bonus) of paddy will be to the tune of Rs 1,600 crore.
If all goes well, the gain to farmers from the increase in MSP of wheat will be to the tune of Rs 2,500 crore. This year 100 lakh tonnes of wheat is expected to arrive in the mandis. The State Agriculture Department has estimated the wheat production to the tune of 150 lakh tonnes this year.
However, about 50 lakh tonnes of wheat will be retained by farmers for seed and domestic consumption. Sowing of wheat will start in a few days from now. Gain to the state treasury and the Mandi Board, RDF and commission agents from the increased MSP of wheat will be in the range of Rs 262 crore. In all, from the increased MSP of wheat and paddy, state treasury, the Mandi Board, RDF and commission agents will earn about Rs 360 crore.
Asked in this regard, BKU leader Balbir Singh Rajewal said what the union government had done was good but it was not enough.
