Due to a market slump, the Punjab government intends to acquire oilseeds from Markfed, a state-run premium cooperative organisation, beginning with the following rabi season.
As numerous mustard growers struggle to recoup their costs by selling their produce, the Punjab government has announced that, due to a market crash, oilseeds will be purchased by Markfed, a state-run premium cooperative organisation, beginning with the next rabi season.
State agriculture director Gurvinder Singh said on Sunday that the action will help increase rabi crop cycle variety.
“Private players paid farmers much higher rates than the MSP last year.” But our aspirations were shattered when mustard seed prices unexpectedly dropped. If farmers are paid less than the MSP starting next season, the state government will buy their animals,” he added.
According to sources, Markfed is a market leader in the cooking oil business, and its presence in the market can help to stabilize oilseed prices.
Nachhatar Singh leased 13 acres of land in Bathinda’s Naruana hamlet, aiming to earn a good living from the mustard crop for the second consecutive season.
But his dreams were dashed when the purchasers refused to give him even 4,000 per quintal, which is more than 1,500 less than the minimum support price (MSP) of 5,450.
“For the first time in 2021, I ventured into mustard cultivation by leasing 12 acres and earning handsomely, as market rates last year were as high as 7,000 per quintal.” This time, I added another acre as a strategy for rabi crop diversification, but I am unable to recoup even the $12,000 per acre cost input, which included the leasing price, seeds, and fertilizers. I’m holding my entire yield for another 2-3 weeks in the hopes that rates will rise. “The government should have a clear plan in place to assist farmers in such situations while also encouraging crop diversification,” he said.
According to state agriculture officials, mustard cultivation would take place on around 60,000 hectares (1.50 lakh acres) in the semi-arid districts of Fazilka, Bathinda, Muktsar, Mansa, and a few other portions of the state in 2022-23.
According to official figures, Punjab reached 60,000 hectares during the 2004-05 rabi crop cycle.
However, it was significantly less than the 4.4 lakh acres planted in the state in 1974-75.
According to market observers, the rabi diversification effort in Punjab is likely to be hindered because the government did not intervene when farmers were paid lower prices this year.
According to Rakesh Rathi, a major mustard merchant, imported edible palm oil is cheaper and has a direct impact on the domestic oilseed market.
“This year, mustard seed is being acquired at a lower price than the MSP. The tendency may have a negative influence on the morale of farmers who may be forced to abandon wheat production. The central government should raise import duties on oil to help mustard farmers, according to Rathi.
