Farmers selling groundnut in open market instead at MSP

By: |
October 29, 2020 9:03 AM

Over 4.70 lakh farmers showed interest in selling their produce at MSP of Rs 1055 to the state government-appointed agency Gujarat Civil Supply Corporation (GSCS) earlier this month.

Sources in the Gujarat State Agriculture Marketing Corporation said that on Monday and Tuesday on an average 7 to 8 lakh bags (35 kg per bag) were arrived in APMCs across the state.

Groundnut growers in Gujarat are preferring to sell their produce in the Agriculture Produce Market Committees (APMCs) or mandis instead of selling it to the state government appointed agencies as they are getting high prices of their yield compared to Minimum Support Price (MSP).

Over 4.70 lakh farmers showed interest in selling their produce at MSP of Rs 1055 to the state government-appointed agency Gujarat Civil Supply Corporation (GSCS) earlier this month. However, very few farmers are turning up with bags of groundnuts at different procurement centres of GSCS. The government-appointed agency has opened 145 procurement centres across the state in anticipation of bulk purchase of groundnuts in anticipation of bumper groundnut crop.

“On the first day of procurement (last Monday) GSCS sent SMS to over 8500 farmers to visit the procurement centres with their yield, but hardly 300 were turned up to sell their produce. They sold nearly 5350 quintal groundnuts worth Rs 282 lakh to GCSC on the day,” said the sources in GSCS.

“There has been a high demand for groundnuts from exporters as well as oil mills and as a result of it, prices of good quality groundnuts in the open markets are almost hovering around Rs. 1200 per 20 kg which is much higher than Minimum Support Price (MSP) of Rs 1,055,” said Atul Kamani, president of Saurashtra APMC traders’ Association.

Even lower grade groundnuts (higher moisture content in seed) are fetching healthy rates of Rs 950 to Rs 1,050 in the open markets, says Kamani adding that the government-appointed agency doesn’t accept groundnuts having moisture content above 8 per cent. In such cases farmers are preferring to throng APMCs of the state rather than selling it to procurement centres opened by GCSC, he added. Farmers having higher stock of groundnuts are directly selling their output to exporters to save on labour and transportation costs as exporters are purchasing the commodity at farmers’ doorsteps.

Sources in the Gujarat State Agriculture Marketing Corporation said that on Monday and Tuesday on an average 7 to 8 lakh bags (35 kg per bag) were arrived in APMCs across the state. APMCs in Rajkot, Gondal, Deesa and Palanpur received over 1 lakh bags since the past couple of days.

Gujarat is the largest producer of groundnuts in India. Despite heavy loss due to excessive rains, the state would cross last year’s 32 lakh tons groundnut production during this Kharif season. Compared to last year’s Kharif sowing of 16 lakh hectares, this year sowing has gone up considerably to around 21 lakh hectares in the state.

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