Saturday, June 11, 2011

Hike in Support Price for Cotton MSP is Unjust and Irrational

Hike in Support Price for Cotton MSP is Unjust and Irrational

Nagpur-June 10, 2011

NAGPUR: The reported decision of the Commission for Agricultural Costs and Prices (CACP) to hike the minimum support price (MSP) of cotton by Rs.300/- per quintal for kharif season 2011-12 has left three million growers of the state unhappy.

"The prices were last revised in 2008-09 and during election year it were raised to Rs 3,000 a quintal more out of compulsion. But the Commission for Agricultural Costs and Prices (CACP) had this year recommended a hike up to Rs 3,00 based on the factors like cost of production, rise in input prices, input-output price parity, trends in open market prices, demand and supply situation, international price situation, prices paid and received by farmers and implications on national and international subsidy structure which is shocking as the recommendation are not in line with CACP calcultion hence we demand it's rejection by the government and wants minimum Rs.5000/- per quintl MSP," informed kishore Tiwari, Vidarbha Jan Andolan Samiti today

"While the MSP is change marginal hike totally ingnorning factors like increasing cost of production, crop failure due to drought and aggravated economic distress in the cotton belt will affect farmers in the coming season," said Tiwari. "This is betrayal of farmers in Vidarbha where cotton is the main cash crop," he added. The VJAS has written to the prime minister demanding that the cotton MSP be hiked to at least Rs 5000 a quintal.

Even for paddy growers of eastern Vidarbha, there is not much relief as the MSP hike of Rs 80 a quintal is not adequate," the VJAS claimed. In case of the widely consumed arhar dal (tur), the MSP has been increased to Rs 3,000 a quintal from Rs 2,300. But the market price of tur for whole of last year was less than than Rs 3,500, if state procurement support is hostile then such modest hike will hardly attract farmers to take up foodgrains and pulses cultivation in the coming season. Thus, the government will not be able to meet the targets set for grains and pulses and short-supply would further fuel retail prices," Tiwari warned.

"The UPA government is urged to review MSP of cotton to Rs 5,000 from Rs 3,300 and that of soyabean to Rs 3,000 from Rs1,860 a quintal in order to save the dying farmers," Tiwari said in a message faxed to the PM.

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