Small farmers of Saurastra have suffered a major blow following the ban on futures trading on wheat. Some of the farmers, who cultivated wheat this year, are being forced to sell their produce at prices lower than the minimum support price (MSP) fixed by the government. | |
| Grabbing this opportunity, traders are buying wheat at much lower prices and stocking the commodity in expectation that the government would open export market after crops from states like Madhya Pradesh, Punjab and Haryana arrive in the markets. |
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| The farmers are complaining that though the crop was good, they have nothing to gain as the prices of wheat at the moment are lower than the production cost. |
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| The government has fixed a minimum support price for wheat at Rs 150 per 20 kg while the farmers had bought seeds at Rs 275-Rs 325 per 20 kg. Apart from this, they also accrued additional cost of fertilisers, electricity and other expenses such as hiring a tractor and running a water pump in their fields. |
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| "This year the cultivation area as well as the production was very good but the circumstances proved adverse. Though the prices at the moment are at par with the minimum support price of Rs 150, the situation may deteriorate further and the farmers may be forced to sell wheat at a price lower than the MSP,"said an aggrieved farmer. |
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| Farmers in Veraval district are already facing such a situation. Arjanbhai Barad, a farmer from the district, said: "The drop in wheat prices following the ban on futures trading have broken the backs of small farmers. I have spent a fortune in buying seeds and we are forced to sell at Rs 145 for 20 kg which is approximately Rs 5 less than the government prices. Many small farmers, who have taken loans to buy the seeds, are also ready to sell their stock at Rs 140 per 20 kg." |
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