MSP Cobweb: Farmers Losing Crores Every Day!

Gaon Connection found astonishing results in its investigation of government websites.

Mithilesh DharMithilesh Dhar   17 Oct 2018 2:46 PM GMT

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MSP Cobweb: Farmers Losing Crores  Every Day!

While increasing the MSP for 21 Rabi crops, including wheat recently, Government said that it's a historic step to double farmer's income. In July Government increased the MSP of Khareef crops as well. But, available government data portrays a different picture.

Gaon Connection found astonishing results in its investigation.

"No Profit"

Indian Farmers are losing crores of Indian rupees every day. Indian Government's local market crop price website shows that no crop is being bought on MSP except two items.

When Maize farmer Susheel bovche of Chhindwara, Madhya Pradesh reached the market to sell his two quintal crop, He received only 1400 rs/quintal whereas Govt MSP for maize is 1700 rs/ Qunital. Sushil told Gaon Connection, "I was told that I would get 1700/ quintal for Maize but here for two Quintal, I am bearing a loss of 600 rs. Here no one has an idea about bhavantar scheme. I am not making any profit."

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Gaon Connection investigated the website on 10th of October. There was a huge difference in MSP in and rate on ground. Farmers lost around 2,025,3513 Rs, only on 10th October.

Let's begin with paddy crop. Paddy crop has started reaching to the markets. The government increased 200 Rs on Paddy MSP. It's 1750 Rs/ Quintal these days. On 10th October, 1,11,922 Quintal paddy was bought in Indian crop Markets. If we take an average rate of that day from different paddy MSP price models of different crop markets, farmers received an average price of 1737 RS/ Quintal.

"Government Effort"

For each quintal farmers lost 13 Rs. If we multiply this with 1,11,922 Quintal, we'll know that Paddy farmers lost more than 14 lakhs on that day. If we calculate the price quoted by local brokers in far-off markets, that is around 1400-1500 rs/ Quintal, the loss would increase.

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Crop MSP was implemented to support Farmers' Interest. The government would buy crops on MSP even if crop price drops. This is an effort of the Government to minimize the loss of farmers.

Now, let's look at Maize crop. On October the 10th, Maize crop was bought at an average price of 1371 Rs/ Quintal. MSP for Maize is 1700/ Quintal. Maize farmers received a loss of 329 Rs/Quintal. That means, Maize farmers lost 2,87,34,86 Rs.

Bhavantar Scheme is closed for a long time. Probably it is due to restart again in next season. Kedar Shankar Sirohi, Chairman of Madhya Pradesh Kisan khet majdoor congress says, " Government is unable to implement its policies. Only increasing MSP would not help. The government does not have enough people to stop market brokers. Traders buy crops on decreased prices. Why big companies are into crop trading? It's obvious that they are here to make big profits."

"Businessmen & MSP"

On 10th October, 1049 Quintal of Bajra or Pearl millet was bought on 1402 Rs/ Quintal. Government MSP is 1950/ Quintal for Bajra. That means Pearl Millet Farmers lost 5,74,853 Rs only on that day.

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Chhindwara Crop Market President Sheshrav Yadav says, "Businessmen don't buy on Government fixed rates. Farmers later get compensation by Bhavatar scheme or by bonus. Businessmen don't let price increase. Now Urad crop is 5600 Rs/ Quintal. However, at my place price never increases more than 4,000 Rs. Crop Market is run according to businessmen.

Similarly, 743 Quintal of Jwar or Cluster bean, was bought for 1979/Quintal but Government price is 2,430Rs. Jwar Farmers lost 33,5,093 Rs.

Same goes for Ragi Crop.

Government is planning to increase the production of big grains. But, it seems impossible if farmers would keep getting huge losses.

The leader of countrywide MSP Satyagraha and farmers' organisation Swaraj Abhiyan, Yogendra Yadav says, "MSP is a joke. There is not a single crop market in India, where a farmer can get fixed MSP. The situation is such that it's too hard for farmers to sell crops on fixed MSP."


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