Wednesday, August 6, 2008

Government intervention in Agri-Food Markets is detrimental to Farmers

As a farmer & farmers well-wisher, I always wanted rice prices to go up to Rs.35-40 Kg (fine varities like BPT, Sona Masuri, etc) and in turn wanted the major portion of the price difference/hike to go into farmers' pocket. In the present free market it has happened/happening. But unfortunately, government is trying to make an intervention which will be detrimental to farmers. Is the government working for poor farmers in villages (who are even committing suicides) or middle-class to rich people in cities & towns? Can't a higher middle-class family (4-5 members) afford to spend Rs.700-800 (20-25kg fine rice) per month on rice, which is equivalent to 2 eat-out dinners for the family ? Everybody (Businessmen, Consumer, Govt., etc) in the country want to eat into farmers' profit/income, even in the crisis-times of Agriculture.
Goverment forcibly takes farmers lands cheaply in the name of Industrialization and sells the same land to Industries & real-estate companies for higher rates denying higher profits/incomes to farmers. Now(of course since ages), Government is trying to intervene in the farm produce market and denying better profits/income to farmers. On the other-side, Govt. & Political parties try/demand to give Rs.1000 per 100kgs paddy (65-70% is rice) and presently giving only Rs.650 and planned to give Rs.800 from this season.
Following news provoked me to post this topic.
http://www.eenadu.net/archives/archive-6-8-2008/panelhtml.asp?qrystr=htm...
I solicit your valuable comments and opinions on this very important issue related to Agriculture, Agri & Food Marketing, and Farm Incomes.

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