The Hindu Business Line : How to ensure farmers get more

It is not really surprising that the farmers get only half the price consumers pay. The farmers don’t have access to quality seeds and fertilisers at subsidised rates at the right time.

In the absence of proper access to credit, they fall prey to unscrupulous money lenders. Moreover, these money lenders and middle men lend advance money to the farmers who are not in a position later to sell their produce in the open market at a profitable price.

Therefore, in order to ensure that the farmers get full value for their produce, rural agricultural credit societies should extend loans to them before the onset of the farming season without procedural delays.

Seeds, fertilisers and other agricultural inputs should be supplied to them at subsidised rates.

Uzhavar santhais (Shandies) that were opened by the Tamil Nadu Government in many parts of the State have found to be beneficial to the farmers as they market their produce directly in the shandies without the help of the middle-men or commission agents.

Similarly, large retail chains like Reliance Fresh have tied up with farmers directly for procuring their produce directly, eliminating middle-men from the distribution chain. These two systems can be extended to other parts of the country also.

S. Nallasivan, Tirunelveli

Foodgrains that are meant for public distribution are purchased, stored and distributed by Food Corporation of India (FCI). Farmers sell their produce to mandis and other intermediaries, who include their margins also, which results in high sale price.

Village Panchayats can be empowered to fix MRP for the agricultural produce within their jurisdiction after taking into account economic factors such as cost of production, standard of living of the villagers, etc.

At district level, collectors can fix a reasonable price after taking into account the transportation cost, storage cost and reasonable commission for the intermediaries.

Once the MRP is fixed at the district level, the State Government can take a final call.

An agricultural body on the lines of the Agricultural Prices Commission may be empowered to fix the retail price for each category of foodgrains within the country. In course of time, the Commission may be appointed as foodgrains market regulator.

T. S. Sundareswaran, New Delhi

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