Punjab strikes it rich with bumper crops,MSP hike

It turned out to be a prosperous 2008 for Punjab farmers as they reaped rich dividends from the bumper wheat and paddy crops. The plentiful season brought some cheer for the state Government as well with Punjab farmers

It turned out to be a prosperous 2008 for Punjab farmers as they reaped rich dividends from the bumper wheat and paddy crops. The plentiful season brought some cheer for the state Government as well with Punjab farmers accounting for a major chunk of the Central pool in wheat and paddy procurement.

While the state produced 157.2 lakh metric tonnes of wheat out of which 106 lakh tonnes were procured,comprising almost 50 per cent of the Central pool,it produced 167 lakh metric tonnes of paddy of which 148.9 lakh metric tonnes were procured.

Balwinder Singh Sidhu,Director,Agriculture,explains,For the wheat season alone in 2008,our farmers earned Rs 15,000 crore more than 2007. For each quintal of wheat that we sold,we got Rs 150 extra.

For paddy too in 2008,our farmers earned Rs 23,000 crore more than the previous year. Here,too,the hike in MSP was nearly Rs 155 per quintal. Our wheat productivity shot up from 42 quintals per hectare in 2007 to 45.07 quintals for each hectare even as our maize output this year was three quintals per hectare higher than 2007. In short,for every crop that we had sown,we have made a profit.

The Punjab Mandi board has collected market fees worth Rs 355.77 crore in 2008,almost Rs 30 crore higher than the corresponding period in 2007,for wheat alone.

Estimates show that the state is all set to net Rs 2,500 crore in the form of VAT,market fees,rural development fund,special cess and other taxes from wheat and rice this year. Therefore,the state that has been complaining of empty coffers for the last few years suddenly finds itself flush with funds.

An economist from Punjabi University,Patiala,Dr Such Singh Gill,says,There is no doubt that the year 2008 belonged to the farmers of Punjab and this was because of the fact that they were given very handsome MSPs. The MSP

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of wheat was hiked by 25 per cent from Rs 750 per quintal to Rs 1,050 per quintal and the MSP for paddy,too,was up by 20 per cent.

Helped by a handsome rise in the MSP,the Central Government picked up around 100 lakh metric tonnes of wheat this season while the market arrival was around 105.9 lakh metric tonnes. Similarly,the market arrival of paddy is expected to touch the 150 lakh metric tonne mark this year and the government purchase will be around 136 lakh metric tonnes.

Singh is,however,quick to put in a word of caution. All this growth is the result of the hard work put in by the farmers,good weather and the Centre helping us out.

The state Government has done little for our farmers and the least they can now do is try and put as much money as they can into agriculture research,extension,rural health and rural education. These are four areas which since the late 80s have been grossly overlooked, he said.