Maize and soyabean have the potential to break the water-intensive rice cropping cycle in Punjab and Haryana, where the Government is trying to promote crop diversification.
In fact, Ashok Gulati, Chairman, Commission for Agriculture Costs and Prices, favoured incentivising the cultivation of maize in these two States, where the Government is trying shift the rice area in about one million hectares to the Eastern States over the next three to five years.
At The India Maize Summit 2013, organised by the National Commodities and Derivatives Exchange and industry chamber, FICCI, Gulati suggested that the Government keep the market open and not ban exports of maize to boost its cultivation.
“We need a stable, predictable and open policy,” he said. India’s maize production is estimated around 21 million tonnes this crop year to June.
The public sector interest in maize, which has so far been promoted by the private sector, has picked up in recent times, Gulati said.
He felt that maize cultivation in States such as Punjab would pick up if a portion of the subsidies currently offered to rice growers was passed on to farmers.
In the Union Budget 2013-14, the Government has earmarked Rs 500 crore to promote crop diversification in States such as Punjab and Haryana.
Maize is used for food, feed and industrial purposes.
To improve maize output, the industry will have to play a key role in providing a comfort level to farmers and should strive to establish a buy-back arrangement with them, said Sanjay Bhoosreddy, Joint Secretary in the Agriculture Ministry.
R. Ramaseshan, Managing Director and CEO, NCDEX, said that price transparency and transformation were needed to make the value chain cost effective and efficient.
“We should aim at providing a platform for credible price discovery and trading through cost effective state-of-the-art modern infrastructure,” he stated.