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The state government has decided to spend Rs 127 crore for procuring groundnut and sunflower seed from farmers at minimum support price (MSP) rates to avoid distress sale of the oilseed varieties.
The decision has been taken as per a request by National Agricultural Cooperative Marketing Federation of India Ltd (Nafed), which is undertaking such exercises all over the country in association with state government agencies. The money spent by the state government will be reimbursed by Nafed. As per an action plan prepared by state government farm produce marketing agency, Markfed, about 28,300 tonne groundnut would be procured under the price support system operation in the state.
The exercise would be conducted at six districts namely Puri, Jajpur, Kendrapara, Jagatsinghpur, Baleswar and Bhadrak, where the crop is grown in nearly 250,000 hectare (ha) areas. “Markfed would soon begin its survey about identifying the crop procurement centres in these districts. The procurement process would be initiated immediately after the ongoing harvesting process is over,” said an official of the state government undertaking.
In January this year, the Commission for Agricultural Costs and Prices (CACP) had asked the Nafed to increase the volume of groundnut procurement to arrest steep price fall in key growing areas. In Odisha, a survey conducted by state agricultural department revealed that groundnuts are sold at Rs 3,500 per 100 kg at market yards, lower than the MSP fixed by Central government.
For 2014-15 rabi season, the MSP for groundnut has been fixed at Rs 4,000 per 100 kg, unchanged from the previous crop season. Similarly, nearly 500 tonne sunflower seed is targeted to be procured under the scheme. The oilseed is being sold around Rs 3,200 per 100 kg in the state, lower than Rs 3,750 per 100 kg MSP set by the Union government. It is grown primarily in Kalahandi and Boudh districts.
In terms of production, Odisha is the sixth largest in groundnut and fifth biggest producer in sunflower in India.
