Distress sales only option for mustard farmers

Despite a bumper mustard crop, delayed payments and short supplies of jute sacks from the National Agricultural Cooperative Marketing Federation of India have forced mustard farmers in MP to opt for distress sales to private parties.

This is what Madhya Pradesh State Cooperative Marketing Federation Ltd, a nodal agency to Nafed for procurement of mustard in the state, has alleged.

Nafed, according to Markfed, has delayed the release of Rs 155 crore payment against the mustard procured from state farmers. "The Nafed has released on Rs 16.50 crore against the one lakh tonne mustard procured by Markfed," a statement issued by department of public relations on behalf of Markfed said adding, "Against the support price of Rs 1715 per quintal Markfed procured one lakh tones of mustard of market value of Rs 180 crore during March 2006 and till April 3. But payments are pending for unknown reasons."

Admitting the delay in payment release, Nafed said it had ensured that payment will be released soon and there was no shortage of jute sacks. "We have released Rs 16.50 crore against 1.10 lakh tones of mustard procured by Markfed, our ministry will release further fund within a day or two. We are pursuing the matter," HS Tomar branch manager, Nafed told BS telephonically from Indore.

The Markfed statement also said that against the requirement of 36 lakh jute sacks to procure mustard, Nafed has provided only 11 lakh jute sacks. To which Mr Tomar said, "There might be a delay in transit, but there is not shortage of jute sacks 21.50 lakh jute sacks are available and of them 11 lakh has been used 10 lakh are in balance."

According to Markfed mustard production has reached its high in Madhya Pradesh and is expected to cross 8 lakh metric tonne figures. The acreage of mustard has also been gone up by 27% from 6.85 lakh hectares to 8.65 lakh hectares.

"Despite the record production, the central agency has asked Markfed to procure only 2 lakh tones of mustard. In absence of payment and glut in market the farmers are compelled for distress sale," said the statement.

While Nafed said there was no distress sale, the procurement will resume soon if rates are available. Market sources have said mustard prices are hovering around Rs 1470 to Rs 1550. The mustard is grown in Gwalior, Bhind, Morena, Guna and Shivpuri area.