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M.R. Subramani

Chennai , Dec. 26

SUNIL Mukhati, a farmer in Dewas district of Madhya Pradesh, held back his soyabean crop last year despite the prices ruling firm at around Rs 13,500 a tonne. During June this year when sowing began, he sold his stocks at 18,000 a tonne.

Somlal Gharilal Patidar of Bharkuda Soma village, also in Dewas village, held back his nose gram (Turkish variety channa) crop in February this year when it was selling at Rs 2,700 a quintal. He sold it last month for Rs 3,650.

Currently, soyabean arrivals in major markets in Madhya Pradesh, the soya hub of the country, have dropped. And farmers are reported to be holding back despite the price ruling firm at Rs 15,000-15,200 a tonne.

"Farmers, when they see an opportunity, do hold back their crop. They can hold it for nearly 10 months," says Mr Mukhati.

"Farmers are financially a little sound these days. Therefore, they can afford to hold back if they think the prices are low or they could rise further," says Mr Ramesh Bafna, a trader in Indore.

"Soyabean is being held back because supplies in the global market is tight due to the failure of the US crop. The next supply is expected from Brazil around February," says Mr Rajesh Agrawal, Chairman, Soyabean Processors Association of India.

Farmers holding back their produce isn't confined only to Madhya Pradesh. Even in Kerala, the growers hold back rubber when offers are low.

"Things have changed a lot these days. There are various ways through which a farmer can hold back his crop and at the same time, meet an emergency for money," say traders.

Wheat, for example, is stored in private silos or warehouses.

"We pay Rs 2.50 per quintal per month for storing wheat in the warehouses. And this includes insurance. If we need money urgently, we can get 60 to 75 per cent of the value as loan from the banks by pledging the warehouse receipts," says Mr Meherban Singh of Nimad district in Madhya Pradesh.

Perishables such as potatoes are kept in cold storages by farmers.

What happens if the price declines? "It is a risk that a farmer takes. Farming itself is a risk that depends on the vagaries of weather. This is another risk," Mr Singh says.

In the case of soyabean, farmers prefer to keep it in their houses. "There is no danger of soyabean getting spoilt. Besides, there is no fear of rodents," Mr Mukhati says.

Farmers, in particular, are finding it beneficial to hold back crops soon after harvest. Some farmers, for example, earlier this year held back their wheat crop, which usually hits the market from April-May onwards.

"Now, we are getting at least Rs 1,000 a tonne higher since it is a lean season," says Mr Mukati. Wheat grown in Madhya Pradesh usually fetches a premium over the varieties grown in Punjab and Haryana. Currently, they are quoted around Rs 10,750-12,000 a tonne against Rs 8,500-9,000 a tonne during April-May.

The farmers also keep themselves updated with the latest situation in the domestic and international market. "We attend various seminars and meetings to brush our knowledge," says Mr Mukhati.

The farmers also take precaution in that they ensure that they don't sow just a single crop. "This kharif, we had sown soyabean, bajra and tur dal. It ensure that we get a good price in at least one crop," says Mr Jeevan Singh, a farmer in Umeriya Village near Indore.

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