Guj farmers prefer open mkt to govt MSP

New Delhi: A spurt in the prices of cereals and other crops has resulted in lower procurement in Gujarat. Farmers in the Western State are preferring sale in the open market over government procurement.

High cereal prices have brought glad tidings for farmers in Gujarat and in some other states, official sources told Bizz Buzz. Fifteen days after the Gujarat government started the procurement registration for various categories of grains, officials realized that there was not been even one-third of farmers’ registrations, as compared to the last procurement season.

Market prices for grains are higher than the minimum support prices (MSPs) at which the government procures grains from farmers. This has resulted in the sale in the open market, said a top-ranking Gujarat government official. The price of groundnuts, for instance, is much above the MSP, he added.

Even in the case of wheat, which is expected to hit the market shortly with fresh harvest, only a few farmers have registered with the government procurement agencies. Again, the reason is the same: high open market prices.

Even the farmers who grow jowar, bajra and other millets have also opted out of selling to the government agencies—and not only in Gujarat. For millets are also fetching higher prices in the open market, the sources said.

Same is the case with the farmers growing pulses. In fact, there are hardly any farmers selling tur daal to the government agencies, the sources said.

In a bid to attract farmers to the public procurement agencies, the Gujarat government is mulling over a fresh announcement of bonus for grains.

The State government procures grains on behalf of the Centre for which they are financially compensated. The Centre needs to procure grains under the National Food Security Act and for such schemes as Mid Day Meal and Poshan Abhiyan.