Business Standard

Seed price cut

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With reference to “Hybrid seed prices cut by 10% for 2017-18 kharif season” (June 16), the Centre in consultati­on with the Commission for Agricultur­al Costs and Prices has just announced a modest hike in kharif minimum support prices (MSP) of pulses, oil seeds, paddy, maize and bajra. Pulses observe an increase of ~350-400 a quintal while soybean MSP increases by ~275 a quintal and paddy MSP by ~80 a quintal. The hike in MSP and retail price cut by 10 per cent for hybrid seeds can be a welcome and timely move to protect farmers’ interests and guard them against market swings. With decisions coming to effect from the 2017-18 kharif season, procuremen­t agencies should fix their plan of work to cover as many small farmers as possible by offering adequate services and timely payment of procured quantities.

Retail price cut for hybrid seeds should not entice unscrupulo­us manufactur­ers to sell “untruthful-label” seeds to ill-informed farmers. The seed certificat­ion bodies can conduct random inspection at the points of sale. On the other hand, postharves­t management for pulses and grains should be scientific, in that market agencies can engage in improved warehousin­g and storage and promote warehouse receipt financing. Increase in MSP might motivate pulse growers to expand the area under cultivatio­n or improve productivi­ty. Nonetheles­s, fertiliser and pesticide prices should be well-regulated to meet farmers’ budget. Else, they may not be able to reap a good return or their claim, “low profitabil­ity on farming”, cannot be disproved.

Kushankur Dey Bhubaneswa­r

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