Telangana suffered loss of Rs 7500 crore since its inception due to MSP

Telangana said that the state government suffered a loss of Rs 3,935 crore by purchasing paddy

Hyderabad: The Telangana government on Sunday (December 27, 2020) announced that the state has so far incurred huge losses of over Rs 7,500 crore by giving MSP (Minimum Support Price) to farmers since the new state was formed in 2014. 

An extensive discussion took place at the review meeting on Sunday on the purchase of various crops, regulated farming policy, sale and purchase of agriculture produce in the markets and the responsibilities of the Rythu Bandhu Samithies. The discussion also took place on the utilisation of Rythu Vedikas, keeping the required seed and fertilisers in adequate quantity available on time, transfer of the required technical knowledge to the farmers and other related issues.

The officials present in the meeting informed that since the Telangana was formed as a state, the government had incurred heavy losses due to purchase of various crops till date to the tune of Rs 7,500 crore due to the purchase of paddy, sorghum, maize, redgram, Bengal gram and sunflower. Though the government had purchased these agriculture produces by paying the MSP, it had to sell them at the lower prices in the market, as there was no demand for these crops. 

The officials underlined that the same situation is cropping up every year. They said that the state government suffered a loss of Rs 3,935 crore by purchasing paddy, Rs 1,547.59 crore due to corn, Rs 52.78 crore due to sorghum, Rs 413.48 crore due to redgram, Rs 52.47 crore due to red sorghum, Rs 9.23 crore due to black gram, Rs 108.07 crore due to Bengal gram and Rs 14.25 crore due to sunflower. 

Besides this, wages paid to Hamalis, and other administrative expenses, the total loss is Rs 7,500 crore, the officials explained.

Meanwhile, the Telangana Chief Minister K Chandrashekhar Rao declared that all the farmers in the state would be given financial assistance under 'Rythu Bandhu' (farmer's friend) scheme from Monday (December 28, 2020) to January 2021. 

At a review meeting on 'Rythu Bandhu', financial assistance held on Sunday at Pragathi Bhavan, the Chief Minister announced that Rs 7,515 crore financial assistance will be given to 1.52 crore acres of the cultivated land of 61.49 lakh farmers at the rate of Rs 5000 per acre for the 2020 summer season. 

Notably, the 'Rythu Bandhu' is a scheme wherein every farmer in Telangana gets Rs 5,000 per acre per season as grant from the state government and as there are two seasons - Kharif and Rabi, each farmer gets Rs 10,000 per acre. This effectively means the number of acres is multiplied by Rs 5000 each per acre. 

The CM instructed the officials concerned to ensure that every farmer gets the assistance in his bank account directly for every acre.

On the other hand, the top officials of various departments said in clear terms that they will not be able to set up 'purchase centres' of crops in the villages from next year.

Notably, due to the COVID-19 pandemic, the government had set up purchasing centres in the village itself and purchased the agriculture produce on a humanitarian consideration that farmers should not suffer losses. 

"It is not possible to do the same thing every time. The government is not a business organisation or trader. It is not a rice miller or a dal miller. Sale and purchase is not the responsibility of government. It is not possible to set up purchase centre in the village from next year onwards," the officials at the review meeting unanimously stated. 

They added, "The new Farm Laws being implemented in the country allowed the farmers to sell their crop anywhere. Hence, the state government need not set a purchasing centre in the villages and as there is no need. But sale and purchase at the agriculture markets should be done properly. Farmers should not get their produce at one time to the markets, instead, they should get them in a phased manner and on turns." 

"Rythu Bandhu Samithies, Marketing Committees, Agriculture extension officers should work in coordination and decide which village produces should come to market on which day and issue tokens accordingly. It will be convenient for the farmers to get their produce on the appointed day. Implement this policy strictly," they said.

This comes amid the farmers' protests against the three new farm laws. The NDA government at the Centre, however, is repeatedly assuring them that they will not do away with the MSP. 

However, in the meeting in Telangana Chief Minister's official residence, disturbing signals were sent out to the farmers in the state.

"Rythu Vedikas (farmers' platforms) are being constructed all over the State. Farmers and officers should meet regularly at the Vedikas. They should discuss and decide on which crops they should cultivate based on the market conditions. They have to formulate strategies from time to time on how to get the MSP," the officials said.

They further said, "Henceforth, it is better if the State government stops advising the farmers on what crops they should cultivate and where. The government should forthwith stop issuing guidelines on the crops to be cultivated. There is no need for the Regulatory Farming policy. Farmers should decide by themselves what crops they should cultivate. They should sell their produce wherever it gets a more price."