The Hindu Business Line : Farmers seek MSP for all produce

Enthused by the rate of Rs 4 per kg at the farm gate, the farmers took to cultivation of onions in a big way. But when the produce was ready for offer, the price is said to have slumped to 40 paise per kg.

The lack of infrastructure for storing the produce, coupled with the perishable nature of the commodity, compelled the farmers to square up and complete the sale process. To their dismay, they found the response rather poor, despite the steep decline in price level. They decided to off-load it in upcountry markets.

They pooled the produce, and at the risk of bearing the freight charges as well, despatched it to Maharashtra. "It was miserable. We had to bear the lorry freight, which was about Rs 10,000/- per load. We moved 8 truck loads. Though we managed to sell, we incurred huge loss and are yet to recover from the same. Why can't the Government fix a minimum support price for farm produce?" asked Mr Balamurugan, a farmer.

According to him, the support price would indicate the tentative rate that the farmer could hope to get at the end of the season. "The wide fluctuation in rates between sowing and harvest is causing concern," he added.

It is reliably learnt that the farmers had appealed to the Government to announce a minimum support price for all farm produces as they were doing for rice and sugarcane.

Meanwhile, the area is emerging as a potential belt for promoting the contract-farming concept. Contented about the returns that they had made during the last season by taking to cultivation of maize, Alampalayam farmers state `in contract cultivation, the buy-back is guaranteed by the farm service provider, who assures to pay the market rate or pre-determined rate, as agreed upon at the time of signing the agreement'.

In the initial phase of the project, mooted by Prime Bio Products (India) Ltd, only 600-odd acres were signed up for contract cultivation.

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