Empower farmers to strike the best bargain

Raj Kumar

Rabi marketing season

SINCE the mid-1960s, the Commission for Agricultural Costs and Prices (CACP) has been recommending the minimum support price (MSP) for 23 crops. The factors being considered for formulating the MSP include the cost of production; input-output price parity; trends in market prices; demand and supply; inter-crop price parity; the effect on the industrial cost structure, cost of living and the general price level; the international price situation; and the implications for subsidy. Supply-related factors like production, imports, exports, domestic availability and carry-over stocks are also considered. The MSP is recommended by providing a 50 per cent margin on the paid-out costs plus the imputed cost of family labour utilisation.

In order to facilitate hassle-free, early and direct payment of farmers’ produce into their bank accounts, procurement portals have been set up by the majority of the states with the help of the Department of Food and Civil Supplies. The system enables online registration of farmers by linking their digitised land records. The farmer has to get himself registered by mentioning his Aadhaar number and other details. After the completion of registration, he can access the portal with his username and password.

Farmers need to keep several aspects in mind to fetch remunerative prices for their produce during the ongoing rabi marketing season.

Sale through online procurement portals: To facilitate hassle-free, early and direct payment of farmers’ produce into their bank accounts, procurement portals have been set up by the majority of the states of India with the help of the Department of Food and Civil Supplies. These portals go by different names: Anaaj Kharid portal in Punjab, e-kharid portal in Haryana, HP Agriculture Produce Procurement Portal in Himachal Pradesh and e-khareed portal in Uttarakhand. Farmers can access these portals through the Central Foodgrains Procurement Portal (www.cfpp.nic.in). Farmers’ registration on this portal is mandatory to avail this facility. The system enables online registration of farmers by linking their digitised land records, receipt of produce in designated markets and payments to farmers through the online mode. The farmer has to get himself registered by mentioning his Aadhaar number, mobile phone number, address, size of landholding, bank account, etc. After the completion of registration, he can access the portal using his username and password.

Market infrastructure: Aimed at facilitating the marketing of farm produce, there are 7,085 regulated markets (including sub yards) in the country, of which Maharashtra has the highest number (929), followed by Uttar Pradesh (633), Karnataka (564), Madhya Pradesh (557), West Bengal (537), Odisha (535), Rajasthan (484), Punjab (437), Gujarat (405), Andhra Pradesh (318), Tamil Nadu (288) and Haryana (285). The market committees are represented by farmers, traders, labourers and officials of agriculture and cooperative departments. From 1970-71 to 2022-23, the number of principal yards in Punjab has increased from 88 to 152; the average area served per regulated market has decreased from 573 to 331 sq km; and the number of villages served per regulated market has declined from 139 to 80.

During the current marketing season (as on April 11, 2024), 2,424 mandis are in operation in Punjab, including 152 principal yards, 285 sub-yards, 1,470 purchase centres and 517 temporary yards. Thus, the farmers do not have to travel more than 7-8 km to sell their produce. Grading facilities are available in all important markets. Grading tests are free for farmers, whereas a nominal fee is charged from traders. The prevailing prices of various crops are disseminated through radio, TV, newspapers, Agmarknet, display boards, etc.

Marketing tips: The crop should be harvested at the proper stage as it affects the quality of grains. Before taking it to the market, clean and dry the produce properly to ensure smooth purchase. To remove the damaged/spoiled grains, proper grading/sorting is necessary. Farmers should be aware of the market arrivals, prevailing market prices and the date of entry of procurement agencies in the market. The MSP is applicable from the date at which the FCI enters the market for public procurement. Therefore, remaining updated about the prices prevailing in different markets can prove to be helpful. The produce can be sold in the markets where prices are higher, but the additional transportation costs should be taken into account. Farmers’ presence at the time of the auction and weighment is a must. If the price offered by the buyer seems less, the farmer has the right not to accept that bid. In case of any doubt or malpractice in weighment, test weighment up to 10 per cent of the produce can be availed free of cost. If any discrepancy is found, the farmers are compensated accordingly. They must obtain Form J, which is necessary to avail the opportunity of getting bonus, etc., if any, announced by the government.

Uniform grade specifications: For wheat, the maximum prescribed limit of moisture content, foreign matter, admixture of other grains, damaged grains, slightly damaged grains and shrivelled/broken grains is 12, 0.75, 2, 2, 4 and 6 per cent, respectively. The maximum prescribed limit of moisture content is 12 per cent for barley, gram, lentil and 8 per cent for rapeseed & mustard.

The author is Principal Extension Scientist (Agricultural Economics), Department of Economics & Sociology, PAU, Ludhiana

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#Agriculture #Minimum Support Price MSP