Punjab chief minister, Parkash Singh Badal and president of ruling Shiromani Akali Dal in Punjab Sukhbir Singh Badal would call on the Prime Minister demanding a raise in the minimum support price of paddy at Rs 850, as against Rs1000 recommended by the Commission for Agricultural Costs and Prices (CACP).
While the Badals have shown their anger against the low MSP for paddy, in the neighbouring Haryana, MP Deepender Singh Hooda has demanded that the Union government lift the ban on the export of non-basmati rice and Pusa-1121 variety, as it was being cultivated by the Haryana farmers on a large scale. Junior Hooda who is the member of the Agriculture Standing Committee of the Lok Sabha said that that the export policy should have been pro-farmers to give equal thrust to the agriculture sector along with the industrial sector.
Sources in the chief minister’s office in Punjab told FE on Thursday that the Punjab chief minister and ruling party president have sought an appointment with the Prime Minister Manmohan Singh to put forward a case for raising the MSP to Rs 1,400 per quintal for common variety and Rs 1,500 for Grade ‘A’ variety. The view the state government would take is that even the MSP of Rs 1,400 per quintal would be hardly enough to absorb the shock of the unprecedented price rise, inflationary pressure, and the demand and supply scenario in the country. The country produced a record 95.68 million tonne of rice in 2007-08, against 93.35 million tonne in the previous year. The government aims to increase the rice production by an additional 10 million tonne under the National Food Security Mission.
When questioned on the affect of this decision on ongoing paddy cultivation, director, agriculture, Punjab BS Sidhu told FE on Thursday, “Farmers have no choice except to go for paddy sowing.” He said that the area under paddy cultivation in Punjab during this year is expected to go up by 50,000 hectare at 26.50 lakh hectare during this kharif season on the back of the anticipation of Rs 1,000 per quintal. The increase in area is even likely to reduce the area under cotton cultivation by 50,000 hectare.
Sukhbir Singh Badal told FE, “The hike announced by the Union government in the prices of petroleum product, apart from the escalation in the prices of farms inputs, have already broken the back of the peasantry. The need of the hour is to come up with some incentives for the farming sector in the interest of ensuring food security for the nation. The farmers were looking forward to the government announcing an MSP in conformity with market realities, keeping in view the need for preventing dependence on foreign countries for our food requirements. Ironically, however, the reverse had happened”.
He said that the Union government was rubbing salt on the wounds of the farmers by withholding a significant raise in the paddy MSP even after the rate of inflation in the country was beginning to cross 9%. He said that was no justification for resorting to ad-hocism when the paddy sowing operations had already begun.
Badal reiterated his party’s demand for linking the MSP of agricultural products to the overall price index or implement MS Swaminathan’s formula for giving the farmers 50% profit plus the actual cost of production.