Ryots get a jolt as govt hikes seed prices

​Hyderabad: The Telangana government has struck a blow to farmers in the state, who are already worried over excess rain hitting their crops, by increasing the price of Bengal gram seed by 98 per cent -- from Rs 3,200 to Rs 6,360 a quintal and groundnut seed price from Rs 7,200 to Rs 7,600 in this rabi season with effect from October 1.

Now the ryots have to pay an extra amount of Rs 30 crore for the Bengal gram seed than what they had done during the previous year. This price hike, announced in a GO by Agriculture Chief Secretary Parthasaradhi, is expected to bring a windfall in profits to the seed companies and prove to be burden for ryots who had high hopes in rabi cultivation.

The government is learnt to have not stored Bengal gram seed. However, it decided to sell 50,000 quintals of the seed during this rabi. In the absence of any alternative, it steeply increased the seed price. The seed companies, after realising the needs of farmers, have resorted to a huge price hike of the seed, after allegedly forming a syndicate.

Also, the government effected a huge cut in subsidised groundnut seed supply to farmers from 55.15 per cent to 33 per cent, thus burdening them. Leaders of farmers’ organisations have accused it of lacking foresight, resulting in ryots being burdened with paying huge amounts for seeds.

The Agriculture department extends seed subsidy of Rs 140 crore for both the rabi and kharif seasons. Sarampalli Malla Reddy, vice-president, All-India Rythu Sangham, has questioned the government as to why it had cut the subsidy, when it ought to have raised it.

He told The Hans India that 94 per cent of farmers belonging to SC, ST, BC and minorities’ communities were involved in raising crops in 60 lakh acres during the rabi season. Reddy termed the increase in the seed price and reduced subsidy as not a welfare measure for farmers.

Another leader, Chengal Reddy, vice-president, Farmers’ Federation, told The Hans India that the government should increase the seed subsidy and reduce the price of seeds. He claimed that the seed price was hiked without the knowledge of Chief Minister K Chandrashekar Rao, while urging the government to re-consider its decision.

When questioned by The Hans India why the seed price was hiked, Parthasaradhi contended that the rate was Rs 10 less than the market rate. He pointed out that when drought prevailed in the past the government had cut the seed price and increased the subsidies.

With good rain during the rabi, green gram seed was being offered to farmers at a rate less than that prevailing in the market. If the government provided the seed at a low price and extended subsidy the seed was reaching the middlemen rather than farmers.

He claimed that there would be no irregularities in the seed distribution this year with the government supplying it at almost the same prevailing market rate.