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Maharashtra grape farmers and exporters have locked horns over the minimum support price (MSP) for export-quality grape announced by the Maharashtra State Grape Grower Association (MSGGA), the apex body of grape farmers. While it’s the harvest season, many exporters have rejected the MSP and harvesting is at a standstill, especially in Nashik district.
In December the MSGGA had fixed the export rate at a minimum of ₹82 per kg in January, ₹71 in February, and ₹62 in March. Association members calculated the price based on 10 per cent profit on the production cost. The members resolved that farmers must sell their produce above this basic price and finalise the higher rate based on the variety of the fruit, colour, shape and quality.
However, exporters and their representatives termed the rates as unaffordable. Some traders proposed ₹50 per kg, according to sources. Traders, exporters and farmers are unwilling to speak on the matter.
Setback to export?
Exporters and farmers fear that, in the absence of a consensus, grape export might face a setback. Maharashtra leads in grape production countrywide, accounting for 81.22 per cent.
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The MSP is based on 10 per cent profit on the production cost of grapesIndia is a major exporter of fresh grapes — recording 2,46,107.38 million tonnes worth .₹2,298.47 crore ($313.57 million) in 2020-21.
Stalemate
According to Kailas Bhosale, Vice-President of MSGGA, exporters are pressurising farmers to sell at a low rate. The association had finalised the rates to ensure grape farmers were not exploited, he said.
However, farmers said there were a few exporters who control the export chain and if they refuse to buy then farmers will be in trouble. Many exporters have approached farmers with offers to buy at the prevailing global market rate.
As the stalemate continues between the association and the exporters, farmers find themselves in a tight spot. Association members have alleged that exporters and traders were spreading misunderstandings among the grape growers.
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