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Editorial...




                                                    hough a little late, the Union government has announced a substantial increase
                                                    in the Minimum Support Price (MSP) for Kharif crops, the sowing for which is
                                               Tin progress across the country. Farmers expect the MSPs to be announced before
                                               the sowing season starts to enable them to do proper crop planning. The enhanced
                                               support  prices,  fixed  for  14  summer  crops,  including  paddy,  the  main  crop  of  the
                                               season, works out to an average of 4 to 52 per cent over last year’s prices.
                                               After the Cabinet Committee on Economic Affairs, headed by Prime Minister Narendra
                                               Modi, cleared the proposals, Minister of Home Affairs rajnath Singh told media persons
                                               that the Centre has kept its promise made in this year’s budget speech regarding the
                                               formula for MSP increase, that is, at least 50 per cent more than the cost of production
         Chief editor                          (A2 + Family Labour), though the calculation is not based on comprehensive cost  (C2),
         S. Jafar Naqvi                        as demanded by farmer organizations. The latest hike would cost the exchequer rs.
                                               15,000 crore, said the Home Minister.
         Consulting editor
         T.V. Satyanarayanan                   Under the latest hike, paddy (common grade) gets a 12.9 per cent increase of rs. 200
         Chief Co-ordinator                    per quintal to rs. 1750 a quintal; cotton (medium staple) has received a good boost in
         M.B. Naqvi                            prices --- over 28 per cent. Maximum hike in terms of percentage has been accorded
                                               to ragi, now termed as a nutri cereal. The support price for it has been raised from rs
         editorial Co-ordinator
         Syed M K                              1900 a quintal to Rs. 2897 a quintal, a hike of 52.47 per cent.
         layout & design                       What is significant is the Home Minister’s statement that the Cabinet Committee has,
         Faiyaz Ahmad                          alongside, approved a proposal to pay the farmers the price difference between the
         Mohd. Iqbal
                                               MSP and the market price in the event of procurement agencies failing to procure
                                               the crop. Although the Home Minister’s contends  that  the new hike would help the
         Head Office                           distressed farmers in getting adequate returns, the farmers’ organizations do not seem
         new delhi: : +91-11-29535848 /        convinced. reacting to the announcement, Bharatiya  Kisan Union, a part of rashtriya
         29535593 / 29535872
         abfienquiry@gmail.com                 Kisan Maha Sangh, described the  MSP hike as an “eyewash”. A stronger comment
                                               came from the All India Kisan Sabha, which said, “this is a ‘historic’ betrayal of the
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                                               ruling party’s poll promise to the farmers.”
         Mumbai: 9702903993
         mtpl.mumbai@gmail.com                 It is obvious that farmer organizations are disillusioned and angry, despite the fact that
                                               the new MSP hike is the highest in recent times. Why are the farmers in this frame of
         Pune: 9881137397                      mind?  The reasons are not far to seek. They already have a long standing grievance
         mtpl.pune@gmail.com
                                               that farming in India has not been generating enough revenue to make it a profitable
         Chennai: 9941130277                   occupation. To add fuel to the flame was their recent experience of a bumper harvest
         mediatodaychennai@gmail.com
                                               and low prices of many crops.
         Admn. & Marketing Office              A  report  prepared  jointly  by  the  Organization  of  Economic  Cooperation  and
         MediA todAy PVt. ltd.                 Development  (OECD), a grouping of 36 countries,  and India Council for research
         J-73, Paryavaran Complex, neb sarai,
         ignou road, new delhi - 110068 (india)  on International Economic research (ICrIEr), says that out of 26 countries that were
         Phone : 91-11-29535848 /              studied,  India is one of three countries – the others being Ukraine and Vietnam –
         29535593 / 29535872
         E-mail: abfienquiry@gmail.com         ,  where  farming  has  become  unprofitable.  The  study  shows  that  the  prices  that
         Web.: www.abfionline.com              Indian farmers received in the period of 2000 to 2016 have remained below those in
         www.mediatoday.in
                                               international markets. This has happened for many commodities. The report puts the
         Subscription                          blame on all those governments in this period which sought to keep food prices low
         india : 1 year rs. 1000/-  by normal Post  to avoid inflation. The policies, skewed in favour of consumers, resulted in farmers
                    rs. 1300/- by Courier
                    2 years rs. 1850/-  by normal Post  losing an average of 14 per cent a year, for nearly two decades.
                    rs. 2450/- by Courier      Against the backdrop of farmers’ distress and protests, there has been, of late, a debate
          overseas :  us$ 120 for 1 year / us$ 230 for 2 years
         single Copy  in india : rs. 100/-     on  the  relevance  of  MSPs  in  the  present  phase  of  agricultural  development  in  the
         single Copy Cost for overseas : us$10  country.  Experts are asking the question, “Have MSPs outlived their utility?’
                   (Add 5% GST)
                                                 Surely,  the  need  of  the  hour  is  a  paradigm  shift  n  our  approach  to  agricultural
         Printed, published and owned by       development.
         syed Mohammad Baqar naqvi,
         Printed at sonu Printer, B-180, okhla industrial Area
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         Published from A-44, 1  Floor, Freedom Fighter   Comments are welcome at: editorialmtpl@gmail.com
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         enclave, neb sarai, new delhi - 110 068 (indiA)  Views expressed by individuals and contributors in the magazine are their own and do not necessarily represent
                                               the views of  “AgriBusiness & Food industry” editorial board.  AgriBusiness & Food industry does not accept any
         Editor : S. Jafar Naqvi               responsibility of any direct, indirect or consequential damage caused to any party due to views expressed by
                                               any one or more persons in the trade. All disputes are to be referred to delhi Jurisdiction only.       .....editor
         Vol 15....... issue 8 ...... August, 2018
        10     August 2018     AgriBusiness & Food  i ndustr yAgriBusiness & Food  i ndustr y
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               August 2018
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