Nirmala Sitharaman, Union Budget, Pradhan Mantari Awas Yojna, Finance Minister
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Last year, the government had raised the MSP by ₹200 per quintal for both the varieties. But this year, it has hiked the price by only ₹65 per quintal. File Photo/PTI

TN farmers await Kuruvai subsidy price, delay Samba crop sowing


Farmers in Tamil Nadu are in a dilemma over taking up cultivation in the coming crop season of Samba. Monsoon rains have started but the government’s delay in announcing subsidy price for paddy cultivated in the previous Kuruvai season has left them marooned for more than a month.

Paddy cultivation was undertaken after the government did not open the Mettur dam, for the eighth consecutive year due to low amount of water, resulting loss of cultivation in around 1.5 lakh acres in three delta districts of Thanjavur, Nagapattinam and Thiruvarur.

This July, the Centre fixed the minimum support price (MSP) for paddy at ₹1,815 per quintal for common variety and ₹1,835 per quintal for A grade variety.

“We came to know that the state government has fixed subsidy prices at ₹50 for the common variety paddy and ₹70 for the A grade variety. For many years, this price has not been increased,” rued PR Pandian, general secretary, Tamil Nadu Cauvery Farmers Association.

Every year on October 1, the state government issues an order announcing Kharif paddy procurement. But this year, even after 15 days of harvesting, the government has not issued any order.

“Because of government’s delay, farmers are facing difficulties. Harvesting was completed in mid-September. Since the government’s order has not yet come, farmers are in dilemma on whether to sell the crop to private traders,” Pandian said, explaining that private traders procure paddy at a very low price.

Last year, the government had raised the MSP by ₹200 per quintal for both the varieties. But this year, it has hiked the price by only ₹65 per quintal.

“This mere hike will do no good for us,” a farmer from Thanjavur lamented.

Most farmers believe that the government is delaying the order on subsidy due to the bye-elections to be held in the state. Assembly seats of Nanguneri and Vikravandi will witness bypolls on October 21.

While most parties have been busy with campaigning and have overlooked the farmers’ issue, the Pattali Makkal Katchi (PMK) has hit out at the Narendra Modi government over its claim of having implemented MS Swaminathan Committee’s recommendation on fixing MSP, saying the measure has not reflected on ground.

“According to Tamil Nadu Agricultural University’s calculations, this year’s cost of production of paddy stands at ₹2,091 per quintal. But the Centre has fixed ₹1,815 per quintal. There is huge difference in the prices,” party founder S Ramadoss said in a statement.

The committee has recommended that the MSP must be at least 50 per cent more than the cost of production. As per this, the government should ideally be giving ₹3,137 (₹2091 [average cost of production] + ₹1046 [50 per cent of the cost of production]), he said and demanded that the state government should increase subsidy prices, so that farmers can get at least ₹3,000 per quintal.

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