Explained: Why Haryana farmers are unlikely to reap benefit of hike in wheat prices amid Ukraine crisis

Currently, the government agencies are procuring wheat at a minimum support price (MSP) of Rs 2,015 per quintal. However, former Haryana Chief Minister Bhupinder Singh Hooda said that the price of wheat has jumped to Rs 3,000-3,500 per quintal in the international market. In these circumstances, a section in the government too felt that the farmers are holding back the wheat stock.

Why farmers may not be able to hold back their stock?

Despite anticipation of a hike in wheat prices, the majority of the farmers may not be able to hold back their produce because of small land holdings, poor financial condition and absence of their own godowns.

According to agriculture economist Devinder Sharma, as many as 86 per cent of the farmers in the country have less than five acre of land holdings. Further, as per government estimates, the adverse weather conditions may lower the wheat production by 8-10 per cent this year compared to previous year.

A farmer leader from Jind district, Azad Palwa, says: “In those fields where the wheat production used to go up to 20 quintal per acre, this time that would be just 13 quintal per acre. The farmers had faced major losses in the crop of cotton too because of a disease. So, farmers have faced back-to-back setbacks. Further, the prices of diesel, petrol and other items required for agricultural activities have increased. The price of tractors of some companies have increased up to Rs 1 lakh per vehicle. The farmers have to meet the expenses for the upcoming sowing season and other domestic requirements too. In these circumstances, the farmers may not be able to stock the wheat at home.”

Farmer leaders say only a small number of farmers who have big land holdings may hold back wheat stock to wait for the hike in prices. Local traders may also stock wheat depending upon their capacity, hoping for better prices in the coming months.

What should the government do?

Sharma says the government should procure more wheat while offering higher prices than the MSP. “With this strategy, the government would have stocks not only to export but for consumption of the countrymen too,” added Sharma.

Farm organisations have also been demanding a bonus of Rs 500 per quintal wheat keeping in view less production and higher prices of food grains in the international market. “Till now, even the private players have offered a hike of just Rs 10-20 per quintal to the farmers. So, the government should come forward to help the farmers,” farmer leader Azad Palwa says.

Newsletter | Click to get the day’s best explainers in your inbox