The quantum of increase in the minimum support price (MSP) for the kharif 2019 season has evoked a mixed reaction from farmer groups across the country. While cotton and oilseeds farmers have welcomed the MSP hike, pulses growers feel disappointed with the quantum of increase.

The MSP for groundnut has been increased by ₹200 in absolute terms to ₹5,090 per quintal. This is seen as a big push for groundnut cultivation.

The current market prices, however, are ruling above the current MSP of ₹4,890 a quintal as well as above the newly announced MSP.

“This is primarily because of the lack of available stocks. But we can see robust groundnut sowing supported by the increased MSP. We welcome this step but we also seek quantitative controls on imports of edible oils from the government, which in turn will brighten the prospects for better prices in the open market,” said Sameer Shah, President, Saurashtra Oil Mills Association (SOMA).

Welcoming the MSP hike, Vitthal Dudhatara, President, Gujarat region, Bhartiya Kisan Sangh said: “The government now needs to ensure that the crops aren't sold below MSP level any time.”

“Even after setting high MSP for various crops, there are instances when market prices rule lower for most of the crops. At the time of procurement we have observed that only about 5-10 per cent farmers of are able to take the benefit, while most of the others have to sell their produce in the open market. If there are steps to protect the prices in the open market, that will truly help the farmers," Dudhatara said.

‘Hikes disappointing’

However, Vijoo Krishnan, joint secretary of the All India Kisan Sabha, said the MSP hikes are very disappointing. “The farmers, who are facing a severe drought across the country, need much more than this. The MSPs for tur, other pulses and paddy are not at all encouraging,” Krishnan said.

He added that the hikes didn't reflect the Swaminathan Committee’s recommendations. "The hikes will not help the farmers cover costs, which have gone up significantly. Also, the government is withdrawing from procurement. This results in farmers not getting the support price," said Krishnan.

Basavaraj Ingin, President of the Karnataka Tur Growers Association, said the hikes will not even help cover the increase in production costs, which are mainly driven by costlier inputs, including higher farm wages.

The Government should take steps to ensure that the procurement process is effectively implemented, he said.

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