Govt starts MSP purchase, but prices hit by cheap tur from Myanmar

NAGPUR: The state government's attempts to lift open market tur rates, by starting procurement at minimum support price (MSP), have failed to have any effect. The MSP is Rs5,450 a quintal while private traders are still buying tur at around Rs4,500.
This is being attributed to the rates of imported tur from Myanmar being further lower, at Rs4,050 a quintal. This is despite a recent move to impose 30% customs duty on the commodity. Good supply from Myanmar is keeping the traders assured. They are in no mood to purchase domestic tur at par with MSP, say sources in the business.

Tur is the only major kharif crop of the region where there has been no shortfall in yields, but farmers are not able to get the expected returns. The pulses have been in the news for the last three years both due to an abnormal increase as well as crash in prices.

Government procurement has begun from this month onwards. The open market rates had gone up Rs300 soon after the announcement, but have now settled at Rs4,500. Traders say, in any case the open market prices will not come at par with MSP.

"If domestic tur is priced at Rs4,500 to 4,700 a quintal, the lemon variety from Myanmar is available at Rs4,050 even after including the duty. There is no dearth of supplies, so why would the Indian trader hike the rates for domestic supplies," asked Pratap Motwani, secretary of Itwari Grain and Seeds Merchants Association.

Chairman of Vasantrao Naik Shetkari Swavalamban Mission (VNSSM) Kishore Tiwari said open market prices are not moving because of the slow pace of MSP procurement. "Rather, the procurement process has turned out to be hostile for the farmer. During a review meeting held at Pune last week, it was reported that so far only a little more than 14,000 tonnes have been procured at government centres," said Tiwari.

At present, a farmer can sell seven quintals per hectare of holding. There was an announcement to increase it to 13 quintals, but no official orders have been released yet. Also, procurement has not started in all the areas, said Tiwari.

Meanwhile, the agriculture department is close to finalizing its estimates for the crop yield. Sources said the cotton output is expected to less than 30% of the average, but that of tur is at par with the average. A yield of 3 to 4 quintals per acre is expected for the crop.

"One of the procurement centres has been opened at our area in Maregaon tehsil. However, the response has been negligible so far. Farmers are waiting for orders to buy 13 quintals per hectare, " said Narendra Thakre, president of Agriculture Produce Marketing Committee (APMC) at Maregaon in Yavatmal district.

Private purchase is happening in other areas of the district, where farmers are selling at rates below the MSP. Even for MSP purchase, only those farmers who have registered online are being allowed, he said.