The data also shows that most of the farmers were unaware of the MSP regime.
Between 2013 and 2019, the share of agricultural households (HHs) selling their produce in APMC mandis declined sharply, while those selling their produce to private traders increased significantly. The data shows that most of the farmers were unaware that Minimum Support Price (MSP) Program and procurement agencies. Of those who were aware, a significant portion did not sell their produce to procurement agencies due to lack of infrastructure. More importantly, the share of households who knew about MSP but did not sell to procurement agencies as they got better prices was negligible.
change of destination
The table shows the % point change in the share of HHs selling their produce to various agencies in the period January-June 2019 as compared to January-June 2013. Sharp reduction can be seen in HH which is sold in crops to APMC mandis. HH selling to private traders/markets increased while the share of sales to buying agencies remained stagnant.
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In 2013, 17% of paddy HHs sold their crop in the mandis. In 2019, the stock declined to 2.7%, which is a decrease of 14.3% points.
In 2013, 29% of wheat HH sold their crop to private traders/markets. In 2019, the share rose to 66.1%, which is an increase of 37.1% points.
low awareness
The table shows the percentage of HHs who were aware of MSP. While awareness increased, levels in HH were still poor. In 2019 only 37% of Wheat HHs and 27% of Moong HHs were aware of this programme.
In 2013, 12% of maize HH were aware of the MSP, which increased to 23% in 2019.
poor infrastructure
The table shows the share of HHs who were aware of MSP but did not sell to the government. agencies due to non-availability of infrastructure (procurement agency not available / no local buyer). The share in crops was quite high.
Better prices as a reason
The table shows the share of HHs who were aware of MSP but did not sell to the government. As agencies they got better price as compared to MSP in other markets. The share of such households fell to a negligible level in 2019.
In 9 of the 12 crops analysed, none of the HHs said better prices were the reason for not selling to government agencies in 2019.
last word
One of the main objectives of the Farmers Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 is to remove farmers from notified markets. However, 2019 survey data shows that most of the farmers were already selling their produce to private traders. Also, most of them were unaware of the MSP programme.
Source: National Sample Survey 70th Round, National Sample Survey 77th Round
Read also: data | Farmers wanted the MSP program to continue even in states with limited procurement
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