Three farmer suicides in the last 45 days have spurred the West Bengal government into action as it now plans to step up procurement from farmers. Sources say the price of the coarse variety of rice has slipped below R648 for a 60-kg bag.
Admitting that there was a sharp decline in demand, state agriculture minister Rabindranath Bhattacharya confirmed that the government would step up procurement from farmers. ?We have set a floor price of R1,080 for the fine variety. We have also decided to pay transport costs to farmers,? he said. However, he asserted that the farmer suicides were not prompted by their failure to get the right price for rice. The state is likely to produce more than 150 lakh tonne rice during 2011. Production of the kharif crop has crossed the annual average of 90 lakh tonne during the year.
West Bengal produced 135 lakh tonne rice last year after eight rice growing districts were hit by a drought-like situation. The situation started turning from bad to worse after farmers failed to fetch a good price for their crop. The fine variety of rice is priced at R1,080 per 60-kg bag in West Bengal, while in other states, it’s R780-800 per bag.
With the state government?s procurement of around 30 lakh tonne through the public distribution system, the state is left with around 120 lakh tonne of the crop this year for own consumption and export. Cheaper rice imports from neighbouring states, such as Assam, Chhattisgarh and Andhra Pradesh, are bringing down the prices in West Bengal.?Cheaper imports, coupled with a bumper crop this year, will spell doom for farmers. If Bengal?s production is sold in the local market at Rs 17 per kg, rice from other states is available much below that,? said Sushil Kumar Choudhury, president of Bengal Rice Mills Association.
Industry sources say the situation could ease once the state government begins procurement. ?We are creating infrastructure for more procurement. Additional centres are being created across the state to buy rice from farmers,? said Bhattacharya. Meanwhile, rice from schemes, such as ‘Annapurna Antyodaya Yojana, are being sold at R2-3 per kg. ?A family does not always consume 35 kg rice. So, the surplus comes into the market at a lower price. This has started competing with the local varieties of coarse rice,? said Choudhury.
