 "Tur price falls below minimum support price on bumper output estimates")
Bumper kharif harvests on better technology driven farm practices have pulled down tur prices below the Minimum Support Price (MSP) in most mandis across India. Favourable climatic condition led by normal rainfalls this monsoon season helped boost acreage and yield this year after two consecutive seasons of drought.
As compared to Rs 5,050 (including Rs 425) a quintal of bonus of MSP fixed by the government, the fair average quality of tur has fallen to Rs 2,950 a quintal in Amreli (Gujarat) mandi. In most other mandis across the country, tur prices are hovering below Rs 4,600 a quintal, nearly 10 per cent lower than the MSP.
This has prompted the government agencies including the Food Corporation of India (FCI) and Nafed to intensify procurement from farmers at the MSP. However, these two agencies have not yet reached all mandis across the country forcing farmers to sell their produce in distress.
"New season arrivals of tur have started in full swing resulting into a sharp fall in its prices. Falling tur price is pulling down all other pulses. Further fall in tur price is unlikely," said Bimal Kothari, Vice Chairman, India Pulses and Grain Association (IPGA).
Accordingly tur dal price has also declined to trade currently between Rs 70-80 a kg in wholesale and Rs 120 - 130 a kg in retail. Last year, tur dal prices had hit Rs 200 a kg which invited government actions in terms of raids and imposition of stock limit. Meanwhile, demonetization of high value currency notes has impacted negatively on retail purchases. But, Rajiv Tevtiya, MD & CEO, RML AgTech, forecasts a positive long term bearing of demonetisation on agriculture technology companies.
"We look at demonetization as a strong positive impact. This will ensure a strong push towards cashless and digital transactions which will greatly increase the consumers' comfort with digital and increase adoption of other digital services as well, such as ours" he said.
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RML AgTech is a technology company providing 'Agri Decision Support Solution' to farmers. This means, the company provides end-to-end solutions to farmers, right from recommending what to sow based on the determination of soil health to advising when to harvest, where to sell and at the best rate.
The company ties up with banks, telecommunication companies and other channel partners to reach out to farmers. Currently focusing in Punjab, Haryana, Rajasthan, Uttar Pradesh (West), Gujarat, Maharashtra, Karnataka, the company is in the process of enhancing our services in these regions and spreading its network to other states as well.
Support from agri-technology companies has benefitted farmers to increase yield not only of pulses but also overall agri commodities.
Consequently, India's tur output is estimated to almost double to 4.29 million tonnes in 2016-17 as per 1st Advanced Estimate from the Ministry of Agriculture compared to 2.46 million tonnes reported in the previous year. Similarly, urad output is estimated to jump to 2.01 million tonnes this year from 2.46 million tonnes last year.
"After the green revolution in the 1960s we now need another revolution in the agriculture sector- a Digital Revolution. We aim to leverage the increase in mobile penetration and digitisation for educating the farmer today on ways to increase productivity and their incomes, thus moving towards achieving the domestic demand and supply. The only challenge we see is providing regular hand holding operationally," said Tevtiya.
Echoing similar response, Ashok Sharma, MD & CEO- Mahindra Agri Solutions Ltd, said: "While demonetization has caused a temporary headwind, we expect the situation to ease out in the forthcoming year. Besides, the government has been increasingly focusing on doubling farm income and a lot of developments are contributing to good market linkages, improving productivity and thereby ensuring fairer returns to the farmers. We expect this focus to continue in the coming year as well. We at Mahindra Agri are also constantly working towards delivering farmtech prosperity, helping farmers adopt best practices and latest technologies that enable them to increase their yield and hence, earn better returns."