El Nino effect: Telanagana farmers gain, but consumers feel the pinch
Cotton, maize, paddy, chillies and turmeric are selling well above MSP, but consumers, especially middle-class families, are paying more at the market
El Nino has reduced the area under cultivation across several parts of Telangana, affecting crop availability and pushing up market prices. However, farmers growing paddy, cotton, maize, dry chillies, turmeric and sesame are benefiting from the price rise.
With rainfall uncertain and irrigation water in short supply, the government has urged farmers to reduce cultivation and opt for less water-intensive crops. However, concerns over lower production in the coming seasons have prompted traders to purchase available produce at prices well above the minimum support price (MSP).
El Nino is a climate phenomenon associated with unusually warm waters in the central and eastern equatorial Pacific. The warming affects atmospheric circulation and can alter rainfall and temperature patterns across several regions.
Cotton and maize fetch higher prices
Cotton prices have reached a 90-year high. In Adilabad, traders are paying Rs 9,260 per quintal against the government's MSP of Rs 8,667.
Also read: Pacific Ocean hits record 30°C: What a strengthening El Nino means for India
Maize prices have also risen sharply. With cultivation declining from 6.46 lakh acres last year to six lakh acres this year, traders are paying Rs 3,610 per quintal against the MSP of Rs 2,410.
Reduced cultivation has pushed up dry chilli prices, with the crop fetching as much as Rs 16,200 per quintal in Khammam.
Turmeric is also commanding high prices. In Nizamabad, traders are reportedly paying up to Rs 26,509 per quintal, depending on market conditions and quality.
Consumers bear the brunt of rising prices
Paddy cultivation has declined from 62.33 lakh acres last year to around 57 lakh acres this year. Ordinary paddy, which has an MSP of Rs 2,441 per quintal, is fetching around Rs 4,000. Fine varieties such as Telangana Sona, Jai Sriram and BPT Samba Masuri are selling for approximately Rs 4,600 per quintal, against an MSP of Rs 2,961.
Also read: ‘Super El Nino’ could put over 450,000 lives at risk from extreme heat
While farmers benefit from higher prices, consumers face higher household expenses. Traders are passing on the higher procurement costs through even steeper retail prices. Jai Sriram rice, for instance, is selling for around Rs 100 per kg.
The surge in prices of rice, dry chillies, turmeric and maize is putting additional pressure on household budgets, particularly those of middle-class families.
(This article was originally published in The Federal Telangana)