Wheat prices have ruled above the minimum support price (MSP) of ₹2,125/quintal during March-April when arrivals of rabi crops began. This is the second consecutive year that such a trend is being noticed.
Prices at agricultural produce marketing committee (APMC) yards in Gujarat were highest at ₹2,327/quintal in the last two months. This month, they have topped ₹2,500/quintal.
According to price data maintained by the Agmarknet portal, the average farm-gate wheat in Madhya Pradesh is ruling 1.4 per cent above MSP, in Uttar Pradesh it is 2.6 per cent higher, in Rajasthan 3.3 per cent more and in Bihar an additional 8.1 per cent. In Punjab and Haryana, farmers depend on procurement due to the absence of private traders in the market, who prefer not to pay higher mandi fees and arhtiya commissions.
“Procurement data show that farmers are not eager to sell wheat to the government in Rajasthan, Gujarat, Uttar Pradesh and Bihar since they are getting better rates in the open market,” said a stockist in Uttar Pradesh who is into wheat trade over the last 30 years. Many farmers are selling wheat in their villages in Uttar Pradesh, without having to take the crop to mandi, he said.
Wheat procurement in Uttar Pradesh has reached 1.45 lakh tonnes (lt) as on May 3 in the ongoing season, 1.57 lt in Rajasthan, 330 tonnes in Bihar and no purchase in Gujarat whereas the target is to buy 52 lt from these four States in the entire procurement period.
Rajasthan stir over chana
Barley is another crop where farmers are fetching higher (than MSP ₹1,735/quintal) and in the first two months the all-India average price was 12 per cent higher at ₹1,944/quintal.
On the other hand, mandi prices of chana, the major rabi-grown pulse, masur and mustard ruled 5-9 per cent below MSPs during March and April. Chana prices were lower 9 per cent below MSP at ₹4,865/quintal, masur also down by 5 per cent at ₹5,686/quintal and mustard lower by 9 per cent at ₹4,988/quintal.
Rajasthan’s farmers have been agitating over low prices as they had expanded the sowing area anticipating that at least MSP would be ensured after the government launched mustard mission targeting to raise its acreage. “Whatever was the price in March, it has come down further and we are highly disappointed,” said Rampal Jat, president of Kisan Mahasangh, which has been spearheading a movement for procurement at MSP in the State. During first four days of this month, mustard prices in Rajasthan has declined to ₹4,585/quintal from average ₹4,987/quintal during March, Agmarknet data show.
Meanwhile, sources said that the Centre’s panel on legal guarantee of MSP, headed by former agriculture secretary Sanjay Agarwal, has almost concluded its consultations and may submit its report after another couple of meetings.