The Central government bought 47.9 million tonnes of Kharif paddy (monsoon crop) which is 23% more than what it bought in 2019, in its procurement operation, according to data released by the government.
The details further show that around Rs9000 crore have been paid to 6 million farmers at Minimum Support Price (MSP).
In Punjab, paddy is the main staple that drives the incomes of cultivators and to support this information, the data show that Punjab’s total share in paddy procurement stands at 42%. Furthermore, the government’s total paddy procurement of summer paddy will likely to touch 74.2 million tonnes this year, an increase of 18% from the last 63.7 million procured during 2019-20.
Official figures show that the government has also raised by 27% the number of paddy-purchase centres, which now stand at 39,122, up from 30,709 last year. The food ministry has expanded its procurement operations, which refers to the government’s buying of farm produce at assured prices, for summer-sown crops to cover an estimated 10.5 million paddy growers, against last year’s 10.2 million.
However, the higher procurement of paddy comes at a time when farmers, mostly from Punjab and Haryana, are protesting in and around Delhi. The outrage has been around the three new farm laws enacted on September 24 by the central government to reform the agriculture sector. The reforms allow agribusiness to freely trade farm produce, permit private traders to stockpile essential commodities for future sales and lay down new rules for contract farming. A crucial change is that traders, agribusinesses and supermarkets can buy produce from any market, rather than only in notified markets where they are licenced to operate.
The laws have angered farmers, particularly in Punjab, who fear the reforms could pave the way for the dismantling of the minimum support price (MSP) system, which offers growers an assured price, leave them vulnerable to powerful agribusinesses and in an even weaker negotiating position than before.
“Up to 30.12.2020, the Government through its Nodal Agencies has procured 251633.79 MT of Moong, Urad, Groundnut Pods and Soyabean having MSP value of Rs.1346.76 Crores benefitting 1,35,813 farmers in Tamil Nadu, Maharashtra, Gujarat, Haryana and Rajasthan,” a government note said.
To be sure, production of Kharif or summer crops this year is likely to be a record 144.5 million tonne, slightly higher than the 143.4 million tonnes produced during the Kharif season of 2019-20, according to an official forecast.
