NEW DELHI: The government on Wednesday released its third advance estimate of the country’s
foodgrain production for the crop year (July-June) 2017-18, revising the total output figure for the year from 277.49 million tonnes (MT) in February to 279.51 MT now.
The revised estimate, which took into account production of both Kharif (summer sown) and
Rabi (winter sown) crops, is over 4 MT more than the previous record output of 275.11 MT in 2016-17. It’ll turn 2017-18 the second year in a row of bumper foodgrain production after facing two consecutive years of drought in 2014-15 and 2015-16.
Figures, released by agriculture ministry, show that most of the major crops - rice, wheat, pulses, coarse cereals, maize and gram - are expected to touch new record in the current crop year.
“The production figures are quite encouraging. Record output of pulses last year had helped India reduce its import in 2017-18 financial year, saving Rs 9,775 crore in foreign exchange. Even export of several agricultural produce picked up during the period, backed by good output and the government’s trade policy measures,” said Union agriculture minister Radha Mohan Singh.
He told TOI that the government has been taking several steps to translate the good output into getting remunerative prices to farmers. “We are now focused on income-oriented programmes rather than adopting the production-centric approach,” said Singh.
The ministry’s figures show that the import of pulses declined by one MT in 2017-18 financial year (from 6.6 MT in 2016-17 to 5.6 MT last fiscal).
The country may witness similar result this fiscal as the production of pulses is expected to be increased further, touching an all-time high of 24.51 MT in 2017-18 crop year. The higher minimum support price (MSP) offered by the government encouraged farmers to increase acreage of pulses.
Since the
India Meteorological Department (IMD) predicts normal monsoon for June-September period, the 2018-19 crop year (July-June) too is expected to be good for the farm sector in terms of production. Backed by the forecast, the ministry has already set a tentative foodgrain production target of 283.7 MT for next year.
The farmers’ well-being will, however, depend on pending market reforms by the states under their respective APMC Act. Most of the states have, so far, not moved much in this direction. The Centre is, meanwhile, expected to bring a new procurement mechanism so that most of the notified crops can be procured at MSP - a move which may help farmers get remunerative prices of their farm produce. The new procurement mechanism will focus on all 23 crops which come within the ambit of MSP, unlike the existing practice where wheat and paddy get all attention and that too in a limited number of states.
The new mechanism will give different options to the states. These options include market assurance scheme (MAS) which involves decentralized procurement and disposal by state agencies. The second proposal is the price deficiency payment scheme (
PDPS) - like the one which is operational in
Madhya Pradesh. The states will be free to involving duly empanelled private agencies for procurement of notified crops at MSP.
Under the MAS, the state agencies will procure farmers’ produce and the state governments will be required to ensure direct payment of MSP into Aadhar-linked farmers’ accounts. The Centre will bear the cost of expenditure to some point and there will be some sharing between Centre and states beyond that point.
"The Centre is, however, likely to link the new procurement mechanism with the states’ efforts to go for agricultural market reforms," said an official. He said a proposal to introduce this condition was discussed in the ministry last month.
If this proposal is finally approved, the states won’t be able to avail the Price Deficiency Procurement Scheme (PDPS) unless they go for such reforms in a time-bound manner.
