MSP sees slight spike, but Kerala farmers worried about share cutting

The Centre gives additional 12 paise per kg towards loading charges
For representational purpose
For representational purpose

PALAKKAD: The procurement price of the first crop of paddy this season has slightly jumped to Rs 29.75 per kg, thanks to the Centre’s decision to raise the minimum support price (MSP) of paddy by Rs 1.43 per kg. 
However, farmers are now worried whether the state government will cut the incentive it gives owing to its precarious finances, thereby bringing down the procurement charges.

Earlier, the government used to raise the procurement price commensurate with that of the Centre. However, in recent years, it not only refrained from doing so, but also reduced its incentive.

“Till date, the state government has reduced its incentive in paddy procurement by Rs 1.72 per kg. It was first reduced by Rs 1, then by 52 paise and again by 20 paise,” said Muthalamthode Mani, general secretary of Desiya Karshaka Samajam.

Manikantan, a farmer from Koduvayur, gave a break-up of the current paddy procurement rate. “Now, the Centre’s contribution after raising MSP is Rs 21.83 per kg, while the state’s incentive is Rs 7.80 per kg. This comes to Rs 29.63. The Centre has also given an additional 12 paise per kg towards loading charges, taking the procurement price this season to Rs 29.75 per kg,” he said.

He said in 2020-21, the Centre’s and state government’s shares per kg of paddy were Rs 18.68 and Rs 8.80, respectively, and so, the procurement price was Rs 27.48 per kg.  “In the past two years, the Centre’s share increased to Rs 21.83 per kg, while the state’s incentive dropped to Rs 7.80. So, the question remains whether the state will further cut its incentive this year,” he said.

On the government’s contention that neighbouring states were not offering incentives, Pandiyode Prabhakaran, general secretary of Desiya Karshaka Samrakshana Samithi, said wages for labourers in Kerala differed from those in Tamil Nadu and Andhra Pradesh. 

“Now, farmers in Kerala are small-scale ones, having a holding of just one to two acres. They have to employ manual labour. As per our study, a farmer family in Kerala owning an agricultural land of 5 acres, earns a measly Rs 21,000 per month. So, unless the state government supports paddy farmers, they will not survive,” Prabhakaran said.

Related Stories

No stories found.

X
The New Indian Express
www.newindianexpress.com