Saturday, November 7, 1998 |
Rid mandis of unscrupulous buyers By S. R. Hooda THE Punjab Agricultural Produce Act, 1961, was passed with the aim and object to establish the markets and regulate the sale and purchase of agricultural produce in the mandis. Technique to kill lantana Factors
behind increase in potato prices
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Rid mandis of unscrupulous
buyers THE Punjab Agricultural Produce Act, 1961, was passed with the aim and object to establish the markets and regulate the sale and purchase of agricultural produce in the mandis. As far as the setting up of mandis is concerned, the aim has almost been achieved because the farmer has not to carry his produce for sale beyond a distance of 10 km as enough principal market yards, sub-market yards and purchase centres have been set up. But the things are not so on the regulation and enforcement side. The transactions of the agricultural produce were to be regulated in such a way as to safeguard the interests of the producers who take their produce to the mandis for sale, and to provide them protection from the malpractices of unscrupulous traders there. The very purpose of the Act is defeated when farmers do not get a competitive and remunerative price of their produce. The government announces support prices to avoid distress sales of the commodities by them. The idea of a minimum support price fails when shrewd trader in collusion with state procurement agencies purchase the produce at rates much below the support price. The farmer who has taken his produce to the market finds himself at the mercy of the buyer. He is to dispose of his produce out of compulsions of defraying various expenses on marriages of children, repayment of debts, repair or construction of his houses and other unavoidable expenditures. Another major problem is of storing the produce as sufficient godown facilities are not available to him at the production place. Sensing the compulsions of the farmers, the buyer offers the minimum price and in a way fleeces him. This results in distress sale of the produce. The traders also fleece the producers while weighing the commodities. The payments in most cases are made after three months and no interest is paid. A new trend has now been set up by the purchasers which is fatal to the interests of the growers. The buyers, instead of making the purchases at the time of auction in the market, stay at their factories and processing plants. Brokers or producers take samples of the produce there and settle the price of the agricultural produce. The produce is weighed on the factory premises and thus no regulation is feasible there. After the weighment of some quantity the buyer stops the weighment and compels the producer to accept a further reduced rate than the settled one under the plea that the quality is inferior. Potential purchasers generally exploit the situation by offering much less price of the produce. They offer the bid of the produce reluctantly so that there may be a glut in the mandi. The purchasers generally pool themselves and offer uncompetitive rates. The auction system thus crumbles and the farmers are compelled to do away with their produce. Besides this, one noteworthy factor that compels the grower to dispose of his produce is that the supply cannot be restricted by him as in the case of industrial products. The production of agricultural commodities mainly depends on the nature, while the production of industrial goods can be well controlled by the man. When there is a bumper crop, the marketable surplus will be on the higher side which may flood the market and thus the price of the produce shall decline. The cultivation of such commodity in a smaller area the next year results in lesser production and higher price. All these factors put limitations and force the grower to part with his farm produce at much lesser than the competitive rates. On the production side, the area of land being inelastic, the option with us is to have a restriction on the size of population through stricter family planning measures. Arrangements are also required to make available the inputs of agriculture at subsidised rates. On the other hand, the regulation and enforcement side requires special attention and the following measures for better marketing of agricultural produce may be taken. The present auction system of agricultural produce, which has almost collapsed, may at once be replaced. The tender system can be adopted under which all intending buyers assemble at a common place and offer rates and quantities of the produce to be purchased by each of them. This would be feasible only when impartial trained grading supervisors allot the grades to each of the heap in a market. They will let the buyers know as to how much produce of a particular grade has been brought for sale on a particular day and the intending buyers may offer the rate and quantity of a particular commodity. The grading laboratory must have the equipment required for the test. Dispute-settling committees can also be set up to resolve any dispute on quality. All the markets may be equipped with weighbridges from where the weighment slips for the buyer and the seller are to be supplied. Thus auction of the produce can be held within an hour or so and time on the weighment on small weighing-scales can be saved. The marketing of the agricultural produce may be spread over to whole of the year instead of the present system of creating glut situation during a particular season. Storage and godown facilities can be provided at the village level itself. The farmers produce may be stored there and 70 to 80 per cent value of the produce paid in advance. Such sort of arrangement can be done on cooperative basis. The produce may be got cleaned and dried at the production point only instead of there in the mandis. This will help in maintaining the cleanliness in mandis. Last but not
least vital measure is that the middlemen should be
minimised so as to enable the farmer to get the maximum
price of his produce. |
Technique to kill lantana LANTANA, commonly known as lal phulnu, phulbehri, panchphuli buti, churail buti, etc, is an obnoxious weed growing in waste lands, grasslands, orchards and forest areas. This weed having its origin in South America and Central America has spread to all districts of Himachal Pradesh except Lahaul and Spiti and Kinnaur. The robust, thick and tall plants of this bush do not allow any other plant or grass to grow under it. It becomes difficult for the animals and human beings to enter or cross thickly lantana-infested areas. Animals when eat the leaves of this weed die due to its poisonous components. Normally farmers cut its bushes to use as fire-wood. But more it is cut, more it spreads with renewed vigour. In addition to the vegetative means, it also spreads through seeds carried by birds. According to Prof P.K. Khosla, Vice-Chancellor, weed scientists of HP Krishi Vishvavidyalaya, Palampur have developed a technique to control this weed. With the financial assistance from the HP State Council of Science and Technology this technique has been successfully demonstrated in about 300-kanal area in Bundla and Saliana panchayats of Palampur subdivision. These panchayat lands which earlier used to be completely covered with thick growth of lantana bushes without a single blade of grass, are now full of green grass on which animals can be seen grazing. Encouraged by the success in this area the university demonstrated the technique in about 100 kanals at Haroli of Una district which was also full of lantana bushes. Under this technique, bushes were cut 3 inches above ground in August-September and when newly sprouted branches were of up to 18 inches height, the glycel (glyphosate) herbicide of 10 ml per litre of water was sprayed on these new shoots during September-October. These bushes died up to the root system within one month. If some plants of this weed emerge from the fallen seeds or regeneration of some leftover bushes, spot treatment should be given with the same herbicide or these plants should be uprooted immediately after the rains. The area thus vacated from these bushes should not be left fallow otherwise some weed may again occupy it. The Vice-Chancellor said that the people of these villages had been advised to make use of the lantana-free area for growing crops or improved grass or other useful agro-forestry trees for fodder and fuel. The weed scientists also suggest that the farmers should spray the glyphosate herbicide only on the lantana bushes. The other crops or useful plants should be protected from its spray. The total expenditure on
the eradication of lantana with this technique varies
according to its population in a unit area, but the
expenditure to control thickly populated lantana from 25
kanals comes to around Rs 4,000. This is much cheaper
than the repeated cost involved in cutting or uprooting
these bushes to get poor production from these areas and
danger to animals. |
Factors behind increase in
potato prices Now let us understand that the increase in the price of a commodity is attributed to several factors. In the case of potatoes, which is treated as a vegetable constituting a major chunk of the vegetable basket of the consumers, it is important to note that its demand is inelastic. In other words, the demand does not decline equally to the price rise or vice versa. Sixty three per cent of the potato is used as fresh potato, 20 per cent goes to meet the seed demand and 17 per cent is wasted, besides other use. The consumption level was reported 15 kg per year in rural areas and 13 kg per year in urban areas as per the 50th round of the National Sample Survey Organisation (NSSO) conducted in 1993-94. The inelasticity of demand has caused a spurt in prices. The other potent reason for price rise is the substitution effect. A study conducted at the Central Potato Research Institute (CPRI), Shimla, has shown that even prices of pulses and potatoes are correlated. The spurt in prices of other vegetables in the market has also been a causative factor in the increase of potato prices. The storage costs for potato have increased almost by 100 per cent. The cold storage industry has been decontrolled. Earlier, the cold storage rentals were fixed either under the Central Cold Storage Order, 1980, or the Acts enacted by the state governments. Punjab was the first state to abolish control on tariff fixation with effect from May 10, 1994. UP followed it up quite a bit latter May 2, 1998, and the Government of India rescinded the Central Cold Storage Order from May 27, 1998. This has resulted in a substantial increase of cold storage rentals from Rs 35-40/q (1995-96) to Rs 70 to 95 /q now. This has added to the increase in prices of potatoes sold after cold storage. Presently about 35 to 40 per cent of total potato output can be cold-stored as against the storage requirement for 50-60 per cent of the produce. The macro-economic factors have also contributed to the price increase for vegetables, including potato. The consumer price index for industrial workers has witnessed increases to the extent of 8.9 per cent (1995-96), 10.0 per cent (1996-97) and 8.3 per cent (1997-98). The current inflation rate is also quite high adding to the increase of potato prices, particularly when the supply is short and the demand is inelastic. Nationally the potato marketing system is not fully integrated and competitive, mainly due to the infrastructural bottlenecks. This results in inefficiency in the pricing system and both producers as well consumers suffer because the farmers get low prices in assembling markets and consumers pay high prices in the terminal markets. This abnormal situation of recurrent gluts, prices crashes and price spirals for the vegetables crops, particularly potato, calls for a package of measures to be adopted. Firstly, 23 agricultural commodities are covered under price support schemes. These include six cereal crops, four pulse crops, nine oilseed crops, cotton, sugarcane and jute crops. It is high time that the formulation of horticultural price policy, with a strong component of an effective market intervention scheme is initiated. This is imperative since the horticultural crops play a significant role in employment generation, nutritional security and the small land holders cannot sustain the losses due to recurrent gluts. Similarly, the consumers cannot afford to buy these essential commodities at exorbitant prices. The EI Niņo factor caused abnormal climatic conditions during the main potato crop period from November, 1997, to February, 1998. This phenomenon has highlighted the need for bringing more area under late blight resistant varieties like Kufri Jyoti and Kufri Badsha. A new variety Kufri Ashoka released in 1996 is also very suitable since it is an early maturing variety and escapes late blight before its appearance in the plains. Moreover, there is an imperative need for the adoption of plant protection measures by the farming community in order to control the menace of this disease and allied problems. It is recommended that the farmers should go in for three-four sprays of Mancozeb (M-45) at seven to 10 days intervals as prophylactic sprays. Two kg of Mancozeb and one litre of a sticker like triton AE/sandovit is sufficient to cover one hectare of potato crop. A solution of these chemicals in 1,000 litres of water should be prepared for the spray. But once the disease symptoms appear on the potato crop or in the adjoining fields one spray of Ridonil (metalaxy) is also called for. The total cost inclusive of the labour cost on this score would range from Rs 5,500 to Rs 6500 per hectare but this is very much needed to save the investment of Rs 40,000 to 50,000 per hectare made for the cultivation of potato. There is also a crying need for developing short-duration, early bulking varieties having dormancy and better keeping qualities so that the produce can be kept by the farmers in indigenous stores for three-four months. These short-duration varieties can help solve many marketing and storage problems and with the adoption of staggered planting starting from the planting of the first crop at the end of September in the north-western plains to the planting of the last crop in April, supply of fresh potato can be ensured over a longer period. Thus four potato crops can be taken in the north-western plains and three crops in the north-central and north-eastern plains. The farmers in the Malwa region of Madhya Pradesh have adopted five types of low-cost storage structures and store potatoes up to June-end and thus supply fresh potatoes to the processing industry. The cost of storage structures is Rs 3,418 for pit storage, Rs 28,391 for brick-walled pit storage, Rs 32500 for room storage and Rs 35,000 for basement storage but the returns are very remunerative. Indigenous storages help in averting the glut situations as well. Area planning and crop forecasting have to be adopted in the country so that timely strategies for marketing and export could be hammered out. The market intelligence also needs drastic improvement for improving the marketing system. The potato is a wholesome food containing carbohydrates, proteins, the best quality dietary fibre, minerals, vitamin C and vitamin B rich in amino acid and lysine, which is good for brain development. People at large need to be educated on the food value of potato. The farmers and other consumers should be encouraged to eat more potatoes in place of cereals during the glut periods. More area under processing varieties like Chipsona 1 and Chipsona 2 is needed to be brought so that processed potato products can be exported. Last but not the least, there is an imperative need for minimising or eliminating the role of the middleman in the marketing system. This can be done either by setting up the producers cooperatives and consumers cooperatives while linking them up for direct sale of these commodities. Secondly, the role of middleman can be minimised on the pattern of what Madhya Pradesh has done in this regard. |
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