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This is an archive article published on November 9, 2017

Marketing chief asks APMCs to ensure adherence to MSP

At the start of the kharif harvest, markets across Maharashtra had reported a sharp slide in prices, with commodities such as soybean, moong, urad, among others, being traded well below the central government-specified Minimum Support Price.

agriculture news, economy news, business news, indian express news In the scenario of the commodities being traded below the MSP, the market committee has been instructed to check its quality.

IN AN attempt to control the ongoing slide of prices in agri commodities, the Directorate of Marketing has ordered the Agricultural Produce Marketing Committees (APMCs) to ensure that the traders do not purchase commodities below the specified Minimum Support Price (MSP). The market committees have also been given the responsibility of inculcating better production practices among growers to help them realise better prices.

At the start of the kharif harvest, markets across Maharashtra had reported a sharp slide in prices, with commodities such as soybean, moong, urad, among others, being traded well below the central government-specified MSP. In case of soybean, the oil seed is trading between Rs 2,300 and 2,700 per quintal, while the MSP, along with the state government’s bonus is Rs 3,050. The MSP is to be paid for commodities, which adhere to the state’s specified Fair and Average Quality (FAQ) specified by the government. This includes moisture content, size etc. In February 2017, the state government had specified pricing mechanism for non FAQ commodities as well.

As per an order issued by Dr Anand Jogdand, director, Marketing, the onus was put on the market committees. The committees have been asked to ensure that commodities that adhere to FAQs are not purchased under the MSP, while commodities that do not match the FAQ should follow the guidelines issued in February.

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The APMCs have also been authorised to cancel the licence of traders who trade below the MSP and, if the state accepts recommendations of a special committee, criminal complaints can also be filed against such traders.
Dr Jogdand’s order also made it mandatory for market committees to display both the MSPs and the FAQs of the commodities. The market committees will also have to create an online system for registration of farmers, specifying details such as their names, 7/12 land extract, along with the Aadhaar Card and account number.

In the scenario of the commodities being traded below the MSP, the market committee has been instructed to check its quality. Henceforth, below MSP trade can only be allowed if the farmer agrees to it after quality verification of the produce.

While these instructions aim at making the market committees responsible for MSP implementation, the mandis are not very sanguine about its success. Lalitbhai Shah, chairman of Latur mandi, said these moves were complex and would not be able to produce the desired effects. “A farmer is normally in a hurry to trade goods and get paid. He might not even wait for the quality analysis,” he added. Shah said the state government should take a leaf out of the Madhya Pradesh government’s scheme, as per which the government pays the difference between the MSP and the traded price, in case of below MSP sales. “As the money will be directly credited to the farmers’ account, the government will not have to spend on storage or handling,” he added.

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