The Hindu Business Line : ‘Make credit available to farmers at 4%’

New Delhi, Jan. 27 The CPI (M) leader and Member of Parliament, Mr Sitaram Yechury, on Sunday sought making available institutional credit at 4 per cent to farmers and a review of minimum support prices (MSP) for wheat and paddy.

Speaking after releasing a study of the Associated Chambers of Commerce and Industry of India on ‘Agricultural scenario: Agenda for farmers prosperity,’ Mr Yechury also called for a revamp of the public distribution system and a substantial hike in public investment in the agriculture sector.

He also called for an immediate ban on commodity futures trading in agricultural products.

A statement issued by the chamber said that Mr Yechury was of the opinion that the MSP for wheat should be Rs 1,250 per quintal, while that of paddy be Rs 1,000 per quintal.

This, he felt, would ensure that farmers got remunerative prices for their produce.

Pointing out that the Government had already agreed to pay between Rs 1,200 and Rs 1,600 per quintal more for wheat imports, Mr Yechury said the Government is still paying about Rs 1,000 per quintal to procure wheat from farmers.

Therefore, there was logic in increasing the MSP for wheat and paddy.

Futures trading

Calling for a ban on futures trading in essential agricultural commodities, Mr Yechury said this was necessary as this promotes speculative trading which, in turn, results in prices of essential agricultural commodities shooting up.

On the Government’s proposal to increase the price of petroleum products, Mr Yechury said the Left would oppose such a move and suggested that the Government first cut excise and other taxes on crude oil and extend the benefits of ad valorem duty to oil company to offset their losses.

Meanwhile, the Assocham study calls for setting up of agricultural clinics, which would test the soil and devise techniques for water management to ensure better yields for farmers in over 500 districts.

Funding for the suggested clinic should be drawn from all fertilizer, seeds and pesticide companies in equal proportion. The proposed clinics should motivate farmers to make value-additions to their agricultural and horticultural products.