In response to the indefinite strike call by traders and farmers across APMCs in Saurashtra region, the Gujarat government clarified that MSP procurement operations are more supportive for farmers in the current market price conditions, than the price deficit payment (PDP) scheme, which they have been pressing for implementation in the State.
The Gujarat government stated that the Bhavantar Bhugtan scheme or Centre's PM-AASHA (Pradhan Mantri Annadata Aay Sanrakshan Abhiyan) umbrella scheme is not a preferred solution to get better realisations at the current market price levels.
"Given the prevailing market rates for groundnut, MSP procurement scheme is more beneficial to farmers. Under the Bhavantar Scheme, the overall supply of the commodity doesn't reduce, therefore, it fails to impact the market price positively. Whereas, under the MSP procurement, physical procurement takes place, which reduces the supply in market, reflecting positively on the prices," a government communique explained.
As a result of MSP purchases, farmers who don't participate directly in procurement process, also get benefited with improved market prices.
Traders and commission agents at most of the market yards in Saurashtra region have been on an indefinite strike from November 1 under the banner of the Saurashtra APMC Commission Agents Association (SACAA), demanding implementation of the price deficiency payment (PDP) scheme for the groundnut crop. The AASHA scheme takes into consideration modal price of the commodity in all growing states, hence if the modal price is higher than MSP rates, farmers do not get any benefit.
Even after the Centre has implemented the AASHA scheme for oilseed crops, States have option to implement either AASHA or MSP procurement schemes for the crops.
The AASHA scheme has characteristics similar to MSP procurement. As with the price support scheme, only 25 per cent of the crop qualifies to be covered under the Bhavantar Bhugtan Scheme. On the quality front, too, the two schemes follow the same parameters.
“After much consideration, it was felt that MSP procurement operations would be more suitable for the groundnut farmers in Gujarat,” it said.
As per the government projections, groundnut output will be at about 27 lakh tonnes for the year 2018-19.
The Gujarat government has already announced procurement of groundnut at MSP rates of ₹4,890 per quintal set by the Centre along with the State bonus of₹110 per quintal with an effective procurement price of ₹5,000. The procurement will begin from November 15 at 122 designated centers across Gujarat.
The procurement will take place under direct control of the State government through the State’s civil supplies department, along with State-appointed agencies.