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Kerala’s MSP for 16 agri produce but to end in worth stability

3 min read

Express News Service
KOCHI: Mathew Sebastian, a farmer in Karuvarakundu in Malappuram, is a devastated man. He is letting this season’s banana harvest in his 15-acre plot go to waste after the costs plummeted to Rs 12/kg. “To break even, we need to get at least Rs 30 per kg,” he mentioned. On paper, Sebastian is entitled to get Rs 30/kg for the crop underneath the state authorities’s minimal help worth (MSP) scheme for 16 agriculture commodities together with banana, which got here into impact from November 1. 

However, the woes of Sebastian expose the chinks within the much-touted help worth scheme introduced by the state authorities in October. For occasion, to avail of the MSP, the farmers must register with Agriculture Department’s portal (goals.kerala.gov.in) with all supporting paperwork (title deeds, land tax cost particulars and many others), the crops must be insured, these ought to be bought at government-approved companies/markets and the scheme is restricted to crops in no more than 15 acres a season. 

“There is a large section of people in Kerala who are farming on leased land of 50 to 70 acres or even more,” mentioned James George, president of Vazhakulam-based Pineapple Farmers’ Association. “The land limit of 15 acres is a deterrent as in Vazhakulam, for instance, three-four farmers pool resources to undertake pineapple cultivation in over 100 acres,” he mentioned. 

James mentioned there’s additionally a delay of two-three weeks to obtain the cost. “As most farmers avail of loans from private money lenders, any delay in getting the money may force the farmers to offload the commodities at distress prices,” mentioned George. 

The market worth of pineapple is now ruling within the vary of Rs 10-12 as in opposition to the state authorities’s MSP of Rs 15/kg.  “Unless the government procurement helps the prices rise, there will be no meaningful impact of MSP because the supply remains the same. The government should convert the procured fruit or vegetables to make value-added products like jams, juice, pickle, etc, thereby ensuring that the supply (of agri-commodity) comes down,” he mentioned. 

Sebastian, a settler from central Kerala at Karuvarakundu, mentioned a lot of banana farmers within the state have incurred large losses this season as a result of a glut in manufacturing. “When we approached the so-called government-registered markets, the officers say they will only procure 5 kg of banana from a 15-kg banana bunch at the MSP of Rs 30/kg. For the remaining quantity, we will have to agree on a price they fix. This is why the new MSP, we feel, is an eyewash,” he mentioned. Agriculture Minister V S Sunil Kumar admitted that there are some technical points however added that these are teething points.  “Over 68,000 farmers have registered with us till December 31. Further, the government has established 600 markets for procuring vegetables and fruits at MSP,” the minister mentioned. 

He mentioned most farmers should not registering with the federal government portal and therefore the problem in offering them with MSP. A complete of Rs 25 crore has been put aside within the finances for the MSP. The authorities will bear the losses in procurement via these funds,” he mentioned. Johnson Oliyapuram, a rice farmer within the Thrissilery village of Wayanad, mentioned the state authorities has a very good MSP scheme for paddy as there are not any land restrictions. 

“While other states procure paddy at central government-fixed Rs 18-19/kg, the state government procure paddy through the Supplyco at Rs 27.50/kg, adding another Rs 8-9/kg to the MSP,” he mentioned. Further, the farmers are knowledgeable upfront concerning the assortment centres and the dates for the procurement of paddy by the Supplyco. “A similar model can be tried for vegetables-fruits too,” he mentioned.

Chinks in scheme

Restriction on land/farmer at 15 acres

Procurement solely by govt markets/companies

Payment delay of 2-3 weeks 

MSP doesn’t end in worth stability