As the government delays procurement of Groundnut, farmers are selling Groundnut at an estimated average of Rs 3,500 per quintal in Saurashtra region of Gujarat at a prices which is much below the minimum support price (MSP).
About a month before poll dates were announced for Gujarat, the state government had announced it would procure Groundnut at Rs 4,500 per quintal and Rs 50 as bonus over and above the central minimum support price.
Small and marginal farmers who need money immediately are preferring the open market because there are long waiting lists for sale to government, and the government also takes a couple of weeks for making payment.
“We understand that the government cannot purchase every pod of Groundnut. But it must also insure farmers against losses they incur by selling in the open market. I had written to the government a month ago to adopt the model of the Madhya Pradesh government by paying farmers the difference between MSP and selling price in the open market” Bharatiya Kisan Sangh (BKS) president said.