As farmers incur losses, MP government fails to procure moong, urad at MSP

The Madhya Pradesh government has neither registered farmers keen to sell moong and urad nor has it procured the products at MSP. The farmers are forced to sell their crops at throwaway prices.

On June 3, the Government of Madhya Pradesh announced the registration for government procurement of moong and urad in the state at the minimum support price (MSP). This registration had to be done between June 4 and June 15. However a month on, the procurement of these pulses at the MSP has not yet begun in the mandis (markets) in the state. Because of this, the farmers are losing Rs 1,500 to Rs 3,000 per quintal.

The Minimum Support Price, commonly known as MSP, is the price set by the Government of India to purchase farmers’ produce directly from them. This intervention is to safeguard farmers from a sharp fall in prices. The central government had increased the MSP of 14 kharif crops for the marketing season 2020-21. For the mandated kharif crops, return to the farmers over their cost of production was estimated to be at least 50 per cent. In pulses, MSP for urad was increased by 5.26 per cent to Rs 6,000 per quintal while the MSP of moong was raised by 2 per cent to Rs 7,196 per quintal.

But, in spite of this raised MSP, farmers in the state are forced to sell their moong crop at about Rs 5,500 per quintal, much lower than the MSP of Rs 7,196 per quintal.

Take the case of Rahul Patel, a farmer from Dewas village in Harda district of Madhya Pradesh. He claims to have incurred a loss of more than 3.5 lakh rupees with moong so far.

“Looking at the good rainfall this year, I had sown moong in 80 acres. The yield dropped due to the locust outbreak. Usually, an acre yields six to seven quintals of moong, but this time, it yielded only four-five quintals per acre,” Patel told Gaon Connection. “This time, my losses began even before I could reap my crop. The final blow came at the mandi with the poor rate,” he complained.

“The price of moong in Harda mandi is currently at Rs 5,300 to Rs 5,500 per quintal. I have sold 200 quintals of moong at Rs 5,400 per quintal, and have held back about 250 quintals hoping rates would improve,” Patel said. “Going by the official rate, I have lost more than Rs 3,50,000 so far. I sold moong for Rs 6,000-Rs 9,000 per quintal last year. I had to sell off 200 quintals already as I was in need of money,” he sighed.

The state government had also assured to buy 25 per cent of the state’s total production of 6,16,000 tonnes of moong and urad at MSP. The government had decided to procure 1,44,000 tonnes of moong and 10,000 tonnes of urad from the farmers in 2020-21, June-July season. The state government had sent a proposal to the central government seeking approval for the said procurement.

Urad and moong are cultivated simultaneously. Both these pulses share many common attributes. Moong usually begins arriving towards the end of May, or by the first week of June each year. This time, however, both the crops were delayed due to the COVID-19 lockdown. Moong arrivals are currently high at the mandis. But, farmers are suffering losses.

Ram Inaniya, a farmer associated with the Aam Kisan Union in Harda district, had sown moong in 80 acres of land, half of which he had taken on lease. According to him, the total cost for moong cultivation in one acre is around 13 to 14 thousand rupees. For the farmers who do not have their own equipment, the cost is even higher. Seeing the falling prices, Inaniya is worried. “Our losses could have been minimised had the government procured our yield at the promised MSP,” he said. “We suffered a lot during the lockdown. The relief we expected with the state government’s procurement has now been jeopardized,” he lamented.

Farmers in Madhya Pradesh are feeling cheated and complain the government has gone back on its promise of higher MSP.

Like Patel, Inaniya also reported a lower yield of five to six quintals moong per acre this year. “The moong traders at the mandi are buying at a rate that is Rs 1,400 to Rs 3,800 per quintal less than the support price. The farmers need money, so they sell regardless of profit or loss,” he said.

Madhya Pradesh leads the nation in urad production. The production of urad in the state this year is estimated to be around 40,000 thousand tonnes. But, urad farmers are expecting similar losses.

Rohit Acharya, a farmer at Bangaon, Tikamgarh, had sown urad in about two acres land. He is yet to harvest his produce but, he too, like moong farmers, fears losses at the market because the rate for urad in the local market is currently between Rs 4,200 and Rs 4,500 per quintal. This is at least Rs 1,500 per quintal less than the promised MSP. Acharya is hoping the government begins procurement at the support price of Rs 6,000 for a quintal.

Kedar Sirohi, the acting president of Madhya Pradesh Kisan Congress alleged that neither the central nor the state government is equipped with a policy on the purchase of moong and urad. “The central government is importing pulses and its impact is visible on the mandis. The farmers who have and are suffering losses due to the lockdown are not provided any relief from the government,” he fumed. “The state government is not initiating the registration due to traders’ lobbying. Maize farmers are already suffering due to poor remuneration, now moong and urad are also proving to be the crops of woes for the farmers,” he lamented.

On being contacted, Madhya Pradesh agriculture minister Kamal Patel said, “I had approved the purchase of urad and moong at MSP. We have also got clearance for this. But, the concerned officials of the department informed us that godowns and warehouses are already full. That is why the procurement could not begin as per schedule.” “Nevertheless, it shall begin soon,” he assured Gaon Connection.

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