Punjab Farmers Suffer Loss Of Rs. 62000 Crore

[sikhizindabad]

Punjab farmers suffer loss of Rs. 62000 crore Punjab Newsline Network Tuesday, 01 September 2009 google_protectAndRun("ads_core.google_render_ad", google_handleError, google_render_ad);CHANDIGARH:A Committee on Minimum Support Price (MSP) & Price Index headed by an eminent economist Ranjit Singh Ghuman on Tuesday submitted its report to the Punjab Chief Minister Parkash Singh Badal in his office.

Disclosing this a spokesman of the Chief Minister’s office said that the report revealed the cumulative notional loss to the farmers of Punjab due to non-linking of MSP of Wheat and Paddy with the Wholesale Price Index (WPI), comes out to be Rs.61696 crore during the last four decades (1968-69 - 2007-08).Of this, the state had suffered a huge loss to the tune of Rs.41411 crore on account of Wheat with annual average loss of Rs.1035 crore and Rs.20285 crore in case of Paddy with average loss of Rs.507 crore annually, due to non-linking of the MSP of Wheat & Paddy with WPI.

The Committee had also pointed out that the Commission for Agriculture Costs & Prices should, however, take into consideration the WPI while recommending the MSP. The WPI, however, should not be taken as the only basis for determining the MSP. There was, however, a need to periodically review and revise the list of indicators for determining the MSP, so that the farmers get remunerative prices of their produce.

The committee was however, of the considered opinion that the agrarian crisis and the farmers’ distress cannot solely be addressed with the instrument of MSP because in view of the larger interest of the other stake holders and the economy, MSP may not be raised beyond certain limits. The solution to the farmers’ distress and agrarian crisis would have to be looked beyond the MSP. In other words, the farmers, the state and the policy makers must also look into non-price solutions to address the crisis. That, however, does not mean that the farmers should not be given remunerative prices of their produce. They certainly deserve remunerative prices for their produce and a much better treatment and environment as they were the backbone of food security and that of Indian economy.

It was evident that Punjab had been a major contributor in the central pool of food grains during the last four decades. The share of Punjab’s Wheat in the central pool was as high as 79 percent in 1968-69 and 74 percent 1969-70. It varied between 53 per cent and 63 percent during 1970s. During the next decade, it oscillated between 54 percent and 72 percent. In 1990s, it varied between 51 percent and 71 percent, with a few exceptions. During 2001-02 and 2006-07 it remained between 52 percent and 75 percent. Likewise, states’ share of Rice in national food bowl increased from 7.36 percent in 1967-68 and 16.42 percent in 1970-71. It increased to 45.13 percent in 1977-78. Thereafter, it remained between 37 percent and 60 percent upto 1990-91. It, however, varied between 33 percent and 43 percent during the decade of 1990s. Thereafter, it hovered between 29 percent and 38 percent.

The Committee revealed in the entire process India became a food sufficient country and Punjab suffered a huge loss in terms of serious erosion of its soil fertility, depletion of sub-soil water and deteriorating ecological balance. Consequently, the Punjab farmers were now beleaguered in a serious socio-economic crisis.

The Chairman of the Committee Dr.Ranjit Singh Ghuman was accompanied by two other members Senior Economist & Consultant Punjab State Farmers Commission Dr.PS Rangi and Senior Economist (Marketing) from PAU Dr.MS Sidhu. Principal Secretary to Chief Minister DS Guru and Additional Principal Secretary to Chief Minister Gaggandip Singh Brar was also present on the occasion.

Punjab farmers suffer loss of Rs. 62000 crore Punjab Newsline Network Tuesday, 01 September 2009 google_protectAndRun("ads_core.google_render_ad", google_handleError, google_render_ad);CHANDIGARH:A Committee on Minimum Support Price (MSP) & Price Index headed by an eminent economist Ranjit Singh Ghuman on Tuesday submitted its report to the Punjab Chief Minister Parkash Singh Badal in his office.

Disclosing this a spokesman of the Chief Minister’s office said that the report revealed the cumulative notional loss to the farmers of Punjab due to non-linking of MSP of Wheat and Paddy with the Wholesale Price Index (WPI), comes out to be Rs.61696 crore during the last four decades (1968-69 - 2007-08).Of this, the state had suffered a huge loss to the tune of Rs.41411 crore on account of Wheat with annual average loss of Rs.1035 crore and Rs.20285 crore in case of Paddy with average loss of Rs.507 crore annually, due to non-linking of the MSP of Wheat & Paddy with WPI.

The Committee had also pointed out that the Commission for Agriculture Costs & Prices should, however, take into consideration the WPI while recommending the MSP. The WPI, however, should not be taken as the only basis for determining the MSP. There was, however, a need to periodically review and revise the list of indicators for determining the MSP, so that the farmers get remunerative prices of their produce.

The committee was however, of the considered opinion that the agrarian crisis and the farmers’ distress cannot solely be addressed with the instrument of MSP because in view of the larger interest of the other stake holders and the economy, MSP may not be raised beyond certain limits. The solution to the farmers’ distress and agrarian crisis would have to be looked beyond the MSP. In other words, the farmers, the state and the policy makers must also look into non-price solutions to address the crisis. That, however, does not mean that the farmers should not be given remunerative prices of their produce. They certainly deserve remunerative prices for their produce and a much better treatment and environment as they were the backbone of food security and that of Indian economy.

It was evident that Punjab had been a major contributor in the central pool of food grains during the last four decades. The share of Punjab’s Wheat in the central pool was as high as 79 percent in 1968-69 and 74 percent 1969-70. It varied between 53 per cent and 63 percent during 1970s. During the next decade, it oscillated between 54 percent and 72 percent. In 1990s, it varied between 51 percent and 71 percent, with a few exceptions. During 2001-02 and 2006-07 it remained between 52 percent and 75 percent. Likewise, states’ share of Rice in national food bowl increased from 7.36 percent in 1967-68 and 16.42 percent in 1970-71. It increased to 45.13 percent in 1977-78. Thereafter, it remained between 37 percent and 60 percent upto 1990-91. It, however, varied between 33 percent and 43 percent during the decade of 1990s. Thereafter, it hovered between 29 percent and 38 percent.

The Committee revealed in the entire process India became a food sufficient country and Punjab suffered a huge loss in terms of serious erosion of its soil fertility, depletion of sub-soil water and deteriorating ecological balance. Consequently, the Punjab farmers were now beleaguered in a serious socio-economic crisis.

The Chairman of the Committee Dr.Ranjit Singh Ghuman was accompanied by two other members Senior Economist & Consultant Punjab State Farmers Commission Dr.PS Rangi and Senior Economist (Marketing) from PAU Dr.MS Sidhu. Principal Secretary to Chief Minister DS Guru and Additional Principal Secretary to Chief Minister Gaggandip Singh Brar was also present on the occasion.

CHANDIGARH:A Committee on Minimum Support Price (MSP) & Price Index headed by an eminent economist Ranjit Singh Ghuman on Tuesday submitted its report to the Punjab Chief Minister Parkash Singh Badal in his office.

Disclosing this a spokesman of the Chief Minister’s office said that the report revealed the cumulative notional loss to the farmers of Punjab due to non-linking of MSP of Wheat and Paddy with the Wholesale Price Index (WPI), comes out to be Rs.61696 crore during the last four decades (1968-69 - 2007-08).Of this, the state had suffered a huge loss to the tune of Rs.41411 crore on account of Wheat with annual average loss of Rs.1035 crore and Rs.20285 crore in case of Paddy with average loss of Rs.507 crore annually, due to non-linking of the MSP of Wheat & Paddy with WPI.

The Committee had also pointed out that the Commission for Agriculture Costs & Prices should, however, take into consideration the WPI while recommending the MSP. The WPI, however, should not be taken as the only basis for determining the MSP. There was, however, a need to periodically review and revise the list of indicators for determining the MSP, so that the farmers get remunerative prices of their produce.

The committee was however, of the considered opinion that the agrarian crisis and the farmers’ distress cannot solely be addressed with the instrument of MSP because in view of the larger interest of the other stake holders and the economy, MSP may not be raised beyond certain limits. The solution to the farmers’ distress and agrarian crisis would have to be looked beyond the MSP. In other words, the farmers, the state and the policy makers must also look into non-price solutions to address the crisis. That, however, does not mean that the farmers should not be given remunerative prices of their produce. They certainly deserve remunerative prices for their produce and a much better treatment and environment as they were the backbone of food security and that of Indian economy.

It was evident that Punjab had been a major contributor in the central pool of food grains during the last four decades. The share of Punjab’s Wheat in the central pool was as high as 79 percent in 1968-69 and 74 percent 1969-70. It varied between 53 per cent and 63 percent during 1970s. During the next decade, it oscillated between 54 percent and 72 percent. In 1990s, it varied between 51 percent and 71 percent, with a few exceptions. During 2001-02 and 2006-07 it remained between 52 percent and 75 percent. Likewise, states’ share of Rice in national food bowl increased from 7.36 percent in 1967-68 and 16.42 percent in 1970-71. It increased to 45.13 percent in 1977-78. Thereafter, it remained between 37 percent and 60 percent upto 1990-91. It, however, varied between 33 percent and 43 percent during the decade of 1990s. Thereafter, it hovered between 29 percent and 38 percent.

The Committee revealed in the entire process India became a food sufficient country and Punjab suffered a huge loss in terms of serious erosion of its soil fertility, depletion of sub-soil water and deteriorating ecological balance. Consequently, the Punjab farmers were now beleaguered in a serious socio-economic crisis.

The Chairman of the Committee Dr.Ranjit Singh Ghuman was accompanied by two other members Senior Economist & Consultant Punjab State Farmers Commission Dr.PS Rangi and Senior Economist (Marketing) from PAU Dr.MS Sidhu. Principal Secretary to Chief Minister DS Guru and Additional Principal Secretary to Chief Minister Gaggandip Singh Brar was also present on the occasion.