Farmer bodies prefer private traders to FCI

Just a few days before wheat harvest in the country, the central government's decision to ask private players to procure wheat 45 days after the harvest has caused widespread discontent among farmers of Punjab, Haryana, Rajasthan and Uttar Pradesh.

Even farmer organisations like the Bhartiya Kisan Union (BKU), All-India Kisan Co-ordination Committee and Shetkari Sangathan have opposed this decision and have appealed to farmers not to sell their produce to the Food Corporation of India (FCI) this year.

Last year, in protest against the import of wheat and lower minimum support prices, the Bharitya Kisan Union (Rajewal), BKU (Lakhowal) and BKU (Ekta) prevented farmers from selling their produce and this call was quite successful.

"If the government wants the FCI to procure wheat, it should allow private traders as well. Private traders give better prices than the FCI. And moreover, wheat prices will increase after 45 days and so the farmers should store their produce till then," said BKU and All-India Kisan Co-ordination Committee President Bhupinder Singh Mann at a farmer awareness programme organised by the National Community and Derivatives Exchange (NCDEX) at Moga two days ago.

Speaking to Business Standard, Member of Parliament and Shetkari Sangathan leader Sharad Joshi said: "We had a meeting of farmers and farmers' organisations in Alwar on February 27, in which we asked them to do future trading for getting better prices. But within five hours of the meeting, the government announced future trading in wheat and paddy had been suspended in Punjab, Haryana and Western Uttar Pradesh. This decision was taken because the government wants farmers to get debt-ridden."

Haryana and Punjab account for close to 70 per cent of the government's wheat procurement.

Wheat production in these two states is projected at 75 million tonnes this year, with a shortfall of 3 million tonnes. Last year, most of Haryana and Punjab's 78 million tonnes of wheat were bought by private players.

But while farmers got a much better deal--Rs 2-3 more per quintal--it was an embarrassment for the government.

For the first time in four decades, India was forced to import wheat to keep various programmes, including the public distribution system, running.