Farmers suffer from inadequate selling price?

Metro India News | Hyderabad 

The Central Government’s repeated announcements about doubling farmers’ income have remained mere rhetoric, with inadequate follow-through on procurement despite announcing Minimum Support Prices (MSP) for crops each season. Farmers across Telangana are facing severe distress as they struggle to find buyers for their produce at remunerative prices, forcing many to sell at significantly lower rates in open markets. With the Central Government showing little interest in large-scale purchases, farmers are left uncertain about where to sell their harvests. In open markets, the absence of MSP-level prices has led to heavy financial losses.

Notably, the government has not stepped forward to procure maize (makka jonnalu), one of the major crops after paddy and cotton in the state. For crops such as maize, chickpeas (senaga), sunflower, soybean, and others, the Centre has imposed conditions limiting procurement to just 25% of production. This has left farmers in a difficult position, struggling to sell the remaining produce. State officials and farmers’ groups express concern that any shortfall left after Central procurement falls on the state government, increasing its financial burden.

The season has seen a massive increase in maize cultivation across Telangana, with the crop sown in approximately 12.94 lakh acres. As farmers bring large quantities to the market, they face steep challenges. The MSP for maize is Rs 2,400 per quintal, but open market prices currently range between Rs 1,600 and Rs 1,800.The shortage of procurement centres, most of which are limited to mandal headquarters, has compounded the problem. Farmers from remote areas, unable to bear transportation costs, are forced to sell at lower rates to middlemen.

Officials estimate a yield of around 2 lakh tonnes of chickpeas this Rabi season. However, the Centre permitted procurement of only 29,000 tonnes. Once this target was met, Markfed (the state marketing federation) halted purchases, leaving farmers anxious about the remaining stock. The MSP for chickpeas is Rs 5,875 per quintal, but market prices hover between Rs 4,000 and Rs 5,000. A similar situation exists with groundnut, whose prices have dropped from Rs 12,667 per quintal in January to around Rs. 9,000 now.

For sunflower, the Centre’s target of 22,000 tonnes has been completed, after which procurement was stopped. Thousands of quintals are now piling up in market yards. While the MSP is Rs 7,721 per quintal, private traders are buying at below Rs. 6,000. Farmers allege that the Central Government’s e-NAM (National Agriculture Market) platform, intended to provide better prices through online trading, has largely failed. Issues such as poor online transaction facilities and lack of awareness among farmers have prevented them from benefiting. Local traders and commission agents continue to mislead farmers and procure crops at lower prices.

Farmers and farmers’ organizations are demanding an increase in the number of procurement centers and the removal of quantity limits. State Agriculture Minister Thummala Nageswara Rao has written multiple letters to the Centre urging procurement at MSP rates. However, farmer leaders argue that merely sending letters is insufficient and that the minister should travel to Delhi to directly engage with concerned ministry officials to exert stronger pressure.