The India is facing the problem of plenty in the agriculture sector. The policy of Government of India of import and minimum support price are not in consonance with each other, rather it is the root cause of problem.
We are regularly having bumper wheat crops and at the same time importing it on law import duty. Only recently the import duty has been doubled from 10 to 20 per cent. The minimum Support Price (MSP) is so high that imported wheat is cheaper than it.
The bulk consumers and food making industry purchased the imported Australian wheat and Government procurements are dumped in FCI and CWC godowns. The Government is trying hard to release for new arrivals to make room for it is godown.
The same case is with the pulses. We are permanently short of it by 40 per cent and import in it. The Government in it also fixed the MSP at higher note making it more costly than the imported pulses.
The traders purchased imported pulses and refused to busy it. It is also dumped in Government godowns. This year the pulse farmers not getting MSP in open market compelled the Government to buy it and Government had to do it. Now to escape this responsibility the Government opened its export.
Till now we were importing it and now exporting. Just by allowing the exports it do not start immediately. The market have be explored in other countries on competitive prices with other nations.
Now same situation is fast emerging in edible oil, we are short by 60 per cent of our requirements and importing it. In the year 2016-17 we made record import of edible oil and oil mills have no avenues to sale it outside.
We have imported 151 lakh tonnes of edible which in the highest record so far. Last year oilseed crops were very good and this year also good oilseed crops are expected. There are clear apprehensions that this year the prices of oilseeds crops will crash.
The private trade will not give MSP to the farmers. The Centre has fixed the MSP of soyabean at Rs.3050 per quintal. The Madhya Pradesh and Maharashtra are its biggest producers. In these state mandis the prices that are offered is at Rs.2500 per quintal.
For mustard the MSP is 3700 rupees per quintal. The Rajasthan is highest grower of mustard and in its mandis Rs.3500 per quintal is offered. Our PDS system is maintained on the palm oil imported from Malaysia and Indonesia and we have imported 93 lakh tonnes. The soyabean crops in America and Brazil are also bumper and will affect the prices globally.
