The Price of pulses esp. arhar had reached upto the level of 200rs per kg recently. Both government and consumers seemed helpless. Not only pulses but onion in recent times also went berserk. It is not that production of these crops was very low in comparison to demand then what was the reason of these touching paramount level?
-- hoarding by middlemen and the sellers to maximise the profit.
Do farmers also get profit of these high prices?
Obviously not, Whether prices are high or low in retail market or production is low or high farmers never get the proportional price at which produce is being sell in the retail market. Recent example of potato can be cited. Because of a bumper production, prices have crashed. A kilogram of potato is fetching just Rs 4-5 in the wholesale market.
Reason of farmers incurring low price on their produce- The general complaint of farmers is that everyone is willing to selel inputs to them but no one cares about the sale of their produce at remunerative prices. All scientific inventions and technological intervention give imphasis on rasing production. Main reasons of farmers incur low prices are-
a) high input cost in comparison to price they get on sale of production.
b) high production bring market prices low force farmers to sell their produce at low prices
c) debt ridden farmers are forced to sell their produce immediately after harvest when the prices are at lowest.
This whole process from production to sale does not even profitable to consumers as when prices are high in retail markets (due less supply of product caused by hoarding) product is being introduced for selling and 4-5 rs kg potato continues to buy at Rs 15-20. In this whole process only traders gain.
Dilemma with pulses- In country like India most of the people are vegetarian hence pulses comprises main constituent of daily diet. But they are getting out of the reach of common man. Main reasons of high prices of pulses-
a) Unlike corn and paddy, a hybrid variety of pulses has not been very effective in enhancing the yield.
b) More research is required for increasing production of pulses.
c) Due to low production 15-20 % short supply of pulses in market.
d) Problems in availability of seeds.
e) Hugh amount of hoarding by middle man.
f) In North India damage caused by blue bulls to the crop and farmers do not kill them as they are called 'Neel Gai' in hindi so religious emotions come to the fore.
In the face of such hurdles some solutions can be cited and applied with the cooperation of both Government and people to increase pulse production of rein in prices-
a) As hybrid seeds are less effective in perspective of pulses so production level can be increased by increasing the acreage under pulses.
b) Substitution of arhar dal by matar dal or rajma may also be helpful but it require behavioural change among farmers for which adequate campaign can be launched by government.
c) Buffer stock should be maintained by government to release them in the markets to stabilise prices when they start to rise.
d) Blue bulls should be stopped from damaging crops. Government also issue licence to kill them as they belong to antelope family not cow.
In midst of all these most of the farmers choose to tread on safe path by sowing wheat and rice. But wheat-rice cycle year after year is damaging the fertility of the soil as well and on the other hand pulses rejuvenates the soil by fixing the nitrogen and they are rain-fed hence requires less amount of water in comparison to rice and wheat. Two courses can be taken by government-
a) Subsidies should be provided on inputs hence to nullify their effect on total production cost.
b) MSP should be provided and when required increased.
In this whole discussion the point to ponder over is proper returns to farmers. As 80% indian farmers are small and marginal and 60% operate on less than 1 hectare land size with rising input cost and low returns on selling of produce make agriculture unattractive for them. But they still continue to indulge in this profession due to lack of alternative. Hence government should take proper steps to make farming profitable for farmers in particular and public in general.
-- hoarding by middlemen and the sellers to maximise the profit.
Do farmers also get profit of these high prices?
Obviously not, Whether prices are high or low in retail market or production is low or high farmers never get the proportional price at which produce is being sell in the retail market. Recent example of potato can be cited. Because of a bumper production, prices have crashed. A kilogram of potato is fetching just Rs 4-5 in the wholesale market.
Reason of farmers incurring low price on their produce- The general complaint of farmers is that everyone is willing to selel inputs to them but no one cares about the sale of their produce at remunerative prices. All scientific inventions and technological intervention give imphasis on rasing production. Main reasons of farmers incur low prices are-
a) high input cost in comparison to price they get on sale of production.
b) high production bring market prices low force farmers to sell their produce at low prices
c) debt ridden farmers are forced to sell their produce immediately after harvest when the prices are at lowest.
This whole process from production to sale does not even profitable to consumers as when prices are high in retail markets (due less supply of product caused by hoarding) product is being introduced for selling and 4-5 rs kg potato continues to buy at Rs 15-20. In this whole process only traders gain.
Dilemma with pulses- In country like India most of the people are vegetarian hence pulses comprises main constituent of daily diet. But they are getting out of the reach of common man. Main reasons of high prices of pulses-
a) Unlike corn and paddy, a hybrid variety of pulses has not been very effective in enhancing the yield.
b) More research is required for increasing production of pulses.
c) Due to low production 15-20 % short supply of pulses in market.
d) Problems in availability of seeds.
e) Hugh amount of hoarding by middle man.
f) In North India damage caused by blue bulls to the crop and farmers do not kill them as they are called 'Neel Gai' in hindi so religious emotions come to the fore.
In the face of such hurdles some solutions can be cited and applied with the cooperation of both Government and people to increase pulse production of rein in prices-
a) As hybrid seeds are less effective in perspective of pulses so production level can be increased by increasing the acreage under pulses.
b) Substitution of arhar dal by matar dal or rajma may also be helpful but it require behavioural change among farmers for which adequate campaign can be launched by government.
c) Buffer stock should be maintained by government to release them in the markets to stabilise prices when they start to rise.
d) Blue bulls should be stopped from damaging crops. Government also issue licence to kill them as they belong to antelope family not cow.
In midst of all these most of the farmers choose to tread on safe path by sowing wheat and rice. But wheat-rice cycle year after year is damaging the fertility of the soil as well and on the other hand pulses rejuvenates the soil by fixing the nitrogen and they are rain-fed hence requires less amount of water in comparison to rice and wheat. Two courses can be taken by government-
a) Subsidies should be provided on inputs hence to nullify their effect on total production cost.
b) MSP should be provided and when required increased.
In this whole discussion the point to ponder over is proper returns to farmers. As 80% indian farmers are small and marginal and 60% operate on less than 1 hectare land size with rising input cost and low returns on selling of produce make agriculture unattractive for them. But they still continue to indulge in this profession due to lack of alternative. Hence government should take proper steps to make farming profitable for farmers in particular and public in general.
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