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Saturday, January 2, 2010

FLEECING THE FARMERS-A NATIONAL SHAME!


Ever since independence, conscious attempts were being made to improve the status of agricultural farmers so that this segment of the population which supports the food needs of more than a billion population to day can lead a reasonable quality of life. Farm income is crucial to achieve such a goal and if what is happening to day is any indication, Indian farmers are destined to be perpetually poor. Empty words and insincere efforts are not going to make any impact as reflected by the countless suicides reported amongst the farmers due to unbearable debt burden and low farm income.

"At Ghazipur, the wholesale commission rate (what farmers pay just to enter the gates) is 10 per cent. "Ten per cent is a ridiculous commission for a five-minute job! It should be less than one per cent," Gulati says. He says the middlemen and retailers add 30-50 per cent to the retail prices of vegetables. This, he says, can be lowered to 3 per cent if middlemen and agents are eliminated or streamlined. Gulati also recommends encouraging direct procurement by retail on a larger scale (when there are no agents, no commissions have to be paid)".

The Minimum Support Price (MSP) scheme is indeed a welcome move but it applies to only some farm produce, bulk of the others being not covered. This is especially true regarding fruits and vegetables where wide difference exists between farmer price and consumer price as reported above. Reducing commission may improve the situation but the hardened middlemen will find some other means to extort the hapless farmer depriving him of what is legitimately due to him. The "Safal" experiment of NDDB must be reinforced and repeated all over the country if the current distortion is to be set right.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

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