Most farmers bought to personal merchants in 2019, reveals new survey knowledge

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The info additionally reveals that many of the farmers have been unaware of the MSP regime.

Between 2013 and 2019, the share of agricultural households (HHs) promoting their produce in APMC mandis declined sharply, whereas these promoting their produce to personal merchants elevated considerably. Statistics present that almost all farmers have been unaware of the Minimal Assist Value (MSP) program and procurement companies. Of those that have been conscious, a good portion didn’t promote their produce to procurement companies attributable to lack of infrastructure. Extra importantly, the share of households who knew about MSP however didn’t promote to procurement companies as they fetched higher costs was negligible.

change of vacation spot

The desk reveals the % level change within the share of HHs promoting their produce to varied companies within the interval January-June 2019 as in comparison with January-June 2013. Sharp discount may be seen in HH which is bought in crops to APMC mandis. HH promoting to personal merchants/markets elevated whereas the share of gross sales to purchasing companies remained stagnant.

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In 2013, 17% of paddy HHs bought their crop within the mandis. In 2019, the inventory settled at 2.7%, which is a lower of 14.3% factors.

In 2013, 29% of wheat HH bought their crop to personal merchants/markets. In 2019, the share rose to 66.1%, which is a rise of 37.1% factors.

low consciousness

The desk reveals the share of HHs who have been conscious of MSP. Whereas consciousness elevated, ranges in HH have been nonetheless poor. In 2019 solely 37% of Wheat HHs and 27% of Moong HHs have been conscious of this programme.

In 2013, 12% of maize HH have been conscious of the MSP, which elevated to 23% in 2019.

poor infrastructure

The desk reveals the share of HHs who have been conscious of MSP however didn’t promote to the federal government. Businesses attributable to non-availability of infrastructure (procurement company not out there/no native purchaser). The share in crops was fairly excessive.

Higher costs as a motive

The desk reveals the share of HHs who have been conscious of MSP however didn’t promote to the federal government. As companies they received higher worth as in comparison with MSP in different markets. The share of such households fell to a negligible stage in 2019.

In 9 of the 12 crops analysed, not one of the HHs mentioned the rationale for not promoting to authorities companies in 2019 was higher costs.

final phrase

One of many predominant targets of the Farmers Produce Commerce and Commerce (Promotion and Facilitation) Act, 2020 is to take away farmers from notified markets. Nevertheless, 2019 survey knowledge reveals that almost all farmers have been already promoting their produce to personal merchants. Additionally, most of them have been unaware of the MSP programme.

Supply: Nationwide Pattern Survey seventieth Spherical, Nationwide Pattern Survey 77th Spherical

Additionally learn: Information | Even in states with restricted procurement, farmers wished the MSP program to proceed