Rise in paddy MSP comes as relief for farmers, but not enough

The relief has followed the almost decade-long freeze on paddy prices, a price that has been consistently kept lower than that of wheat. But the farmers are worried that the growing input costs will drive them once again into debt.

Says Mohinder Singh, a farmer in Jalandhar district of Punjab: "Our input costs have risen significantly over the years, but the MSP has not risen accordingly. I foresee a very bleak future for the farmers. The high input cost will lead to more indebtedness. We are not happy with the current MSP fixed for paddy. At least, the government should have fixed Rs 950-Rs 1,000 per quintal."

The new interim MSP pales in comparison with the increase in prices and the peaking inflation.

Bhupender Singh of village Mahesari in district Moga of Punjab says: "If we calculate cost incurred for producing per quintal of paddy, it comes more than Rs 900 but the government has fixed an MSP of Rs 850 for coarse variety and Rs 875 for parwal variety. Even the Commission for Agricultural Costs and Prices has proposed an MSP of Rs 1,060 per quintal of paddy."

The disappointment is to be seen in states where rates are dictated by millers and traders in the absence of mandis and government procurement.

In Orissa, farmers say they have to be content with what the trader gives them. Farmers selling old Rabi stocks are seeing an increase in the price quote by traders, but they are waiting for the Kharif harvest n September when the new MSP will be reflected more faithfully in the open markets.

Pramod Dalai, a farmer in Mugabhanga village in Cuttack district, says: "Earlier, I used to get Rs 680 per quintal from the private traders for ordinary variety of paddy but after the new MSP was declared by the Centre I am getting Rs 730 per quintal. It is still Rs 120 less than the MSP per quintal."

In Uttar Pradesh, another state where farmers have no access to the mandis or government procurement, the inflation and prices have taken the joy out of the increased MSP. They want it raised to Rs 1,000 per quintal this year to adjust for the higher cost of agricultural inputs.

"Last year, although the paddy MSP was at a much moderate level of Rs 745, the rate of inflation was under control. This year the interim MSP at Rs 850 has caused concern thanks to inflation," says a state food and civil supplies department official.

It should not be below Rs 950 per quintal, he says.

Ambika Prasad Dubey of Shivrajpurwa village in Gonda district agrees. "The costs of diesel, fertilisers and wages for labour have gone up substantially over the last year. The MSP should factor in the increase in input costs."

This year Dubey will cultivate paddy in three acres of land, which will fetch him about 60 quintals. He is hopeful of a bumper crop this season due to timely rainfall.

Ashok Kumar Singh of Lakmanpur village in Chandauli district, who will cultivate paddy over seven acres, also wants the MSP to be at a level of Rs 1,000 per quintal.

In Haryana, Mamchand, a farmer in Narayangarh in district Ambala, is apprehensive whether the new MSP will be able to absorb the high cost of diesel that effects them the most as Haryana fails to provide power and irrigation facility to its agriculture. "The cost of running generators makes our costs shoot up," he says.