Moong and urad prices in Maharashtra are trading below the minimum support price (MSP) as the farmers wait in hope that the government shall soon begin procurement centres. Moong is trading at Rs 3,800-5,400 per quintal in Latur — one of the key pulse producing regions in the state while the MSP has been fixed at Rs 6,975 per quintal. Urad is trading at Rs 3,800-4,450 per quintal when the MSP is Rs 5,600 per quintal.
Significantly, with the state government threatening to crack the whip on traders who purchase below MSP from farmers, the fear of being punished still prevails among traders. Pandurand Mundada, president, Grain Seeds and Oil Merchants Association (GSOMA) in Latur said that the traders now insist on ‘No Objection’ letters from farmers to be given to Commission Agents that they are happy with the purchase and have no complaints about the purchase or trade.
This is being done to prevent any possible complaint that may come from farmers at a later stage. Traders in Maharashtra had boycotted auctions for commodities that come under MSP for more than a week last month and had resumed trading subject to the condition that they would purchase at MSP only if they could afford the price. Moong arrivals have begun and are to the tune of 3,000 quintals and Urad arrivals are nearly 3,500 quintals on a daily basis.
Senior traders who did not wish to be named alleged that most of the material is sold under the non-FAQ category. If the commodity is considered as non-FAQ then the rule of MSP purchase does not apply, Mundada revealed. He pointed out that most of the pulses are graded as non-FAQ with the permission of the farmer, commission agent and a written compliance letter is taken from him that he has no objections to the sale of the pulses. This is being considered a safer way since the traders fear that action could be taken against them as the market prices are much lower and MSP is high, traders alleged.
The rates are lower than last year’s price of Rs 4,500-5,200 because of excess moisture, senior traders from Latur said. Significantly, more than 14-23% moisture has been detected in Moong this year. Last year, the proportion of the moisture content was to the tune of 16-18%. The government has set a parameter of 12% moisture content for the purchase of Moong at MSP and if the moisture content varies or is higher it is considered as non-FAQ grade and there is no problem in selling the produce under MSP rates, industry people explained.
Lalit Kumar Shah, chairman, Latur APMC said that they have written to the government seeking opening of procurement centres so that farmers can be benefited. Maharashtra cooperation minister Subhash Deshmukh had told FE that the state government plans to approach the Centre with a recommendation to make Minimum Support Prices (MSP) mandatory across all states in order to ensure uniformity and prevent traders from purchasing from states where market prices are lower than MSP.
Earlier, pulse and grain traders across mandis had urged the chairman of the respective APMCs to publish clarifications on the penalty provisions in local media and to also display these at market yards. Traders said that prices are determined by market forces, depending upon supply and demand. Traders cannot be forced to buy any commodity at a price determined by the government. They had also asked for written assurances from the government.