Soya-growers in Madhya Pradesh are feeling the Beijing Olympics heat as China has closed a number of its organo-phosphorus manufacturing units as a pollution control measure.
Although the MP government is upbeat on higher soya yield this year, insiders say farmers are asking for subsidy on pesticides. A proposal of Rs 112 crore has been forwarded to Centre for the subsidy.
These units were the main suppliers of almost all chemicals used in Indian pesticides. The main soya-growing area of the Ujjain, Ratlam, Jhabua and Indore region had observed pest attack during a dry spell in the last week of July and the first of week of August but due to a good spell of rain the problem has gone.
However, farmers still fear if another dry spell comes they will be in trouble. The prices of pesticides in Madhya Pradesh have gone up by 150-250 per cent and input cost for pesticides has gone up by Rs 1,000-1,500 per hectare from Rs 1,000 per hectare last year.
Speaking to Business Standard, the chairman of the Dhanuka group, RG Agrawal, said: “Besides the Olympics, 120 per cent hike in excise duty, higher prices of petro products (main component in pesticides) and dollar devaluation are main reasons for the shortage and higher prices of pesticides. Most of the intermediates are imported from China, which offered them at 50 per cent less than in India. It had happened in other countries too. None can survive on higher manufacturing costs and China had monopoly before Olympics.”
According to market sources, all organo phosphorus compound prices have gone up from Rs 2,000 per tonne to Rs 10,000 per tonne within two years. “The current rains have raised hopes that the farmers will have some relief,” he said. Besides organo phosphorus, Synthetic Pyrethrins, Chlorinated hydrocarbons and even weedicides are also in shortage.
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Manufacturers have said markets had picked up before the present spell of rains particularly in Dhar, Ujjain, Ratlam and other Malwa regions.
“Shortage of pesticides has restricted farmers to wait for rains. The prices have gone up by 200-250 per cent in case of organo-phosphorus compounds. The input cost on pesticides has gone up from Rs 1000 per quintal of seeds to Rs 2000-2500 per quintal,” a well-placed source in Bayer India Ltd told Business Standard.
However, the state government and Indore-based Soyabean Processor Association of India (SOPA) have said a bumper crop is expected as sowing has touched 5.3 million hectares in Madhya Pradesh.
“There is no alarming report of pest attack from any region barring some cases of demand for subsidy on pesticides from farmers of Ujjain, Ratlam and Jhabua belt. We have forwarded a proposal of Rs 112 crore subsidy to Centre under Integrated scheme of Oilseeds, Pulses, Oilpalm and Maize (ISOPOM) on 5th of this month and are waiting for Central government’s response. Meanwhile, we have extended a subsidy of Rs 5 crore to the farmers,” ND Sharma, director (in-charge) of state agriculture department said.
While SOPA spokesperson Rajesh Agrawal said, “There is a good spell of rains and we are expecting the sowing to touch 53 lakh hectares and production to reach 60 lakh tonnes. No significant pest attack has been reported in the state.”
Each year a huge area of soya crop is destroyed due to pest attack, still only 10-15% of farmers can afford a proper dose of pesticides in Madhya Pradesh soya production has never crossed 40 lakh tonnes in Madhya Pradesh.