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Centre steps in to help chilli farmers
Bowing down to the pressure from the farmers and Opposition parties agitating over unremunerative prices of chilli in the two Telugu States, the Centre on Wednesday announced it would buy the produce at Rs 5,000 per quintal (market intervention price) till May 31 with an overhead charge of Rs 1,250.
New Delhi: Bowing down to the pressure from the farmers and Opposition parties agitating over unremunerative prices of chilli in the two Telugu States, the Centre on Wednesday announced it would buy the produce at Rs 5,000 per quintal (market intervention price) till May 31 with an overhead charge of Rs 1,250.
The overhead charges include the purchase tax, mandi tax, godown charges, packing material, loading/ unloading, commission, transportation, grading and packaging/ stitching charges. The losses, if any, would be shared by the Central Government and the State Governments on 50:50 basis.
However, the loss is limited to 25 per cent of the procurement price, including the permissible overhead charges.
Union Minister M Venkaiah Naidu on Wednesday met his Agriculture Minister Radha Mohan Singh to discuss the problem and urged him to announce an interventionary measure in view of the wide spread discontent among the farming community over the failure of the Governments' in containing the exploitation of chilli farmers by the middlemen.
Both the ministers later told the media that the Centre would buy the produce through the State Government agencies and urged the farmers not to depend on middlemen.
AP has a stock of about 88,300 metric tonnes of chillies and Telangana had 33,700 metric tonnes. They said they had reviewed the issue of MSP for chillies thoroughly and also reviewed the reports from the local governments.
There would be no MSP for commercial crops and hence market interventionary methods were the only way out.
Venkaiah Naidu expressed happiness over the Agriculture Minister's decision and thanked him for helping the farmers in distress. He assured the farmers that the Centre would always help the farmers in times of crisis.
Market yards in Telangana and AP, which were flooded with chilli produce of late, have been witnessing violent scenes due to the dip in the prices.
Farmers who were expecting Rs 6,000 per quintal initially had been disappointed at the offer of Rs 2,500. While Opposition Leader in AP Y S Jaganmohan Reddy, undertook a two-day dharna protesting over the official apathy at Guntur Mirchi Yard and Khammam Market Yard, witnessed violent scenes with the farmers ransacking the market office and destroying the furniture.
It is said that AP CM N Chandrababu Naidu, who did not want the situation go out of control, particularly during his absence (he is embarking on US tour), pleaded for the Centre's intervention and sought M Venkaiah Naidu's intercession before leaving for US.
