One of many chief goals of The Farmers’ Produce Commerce and Commerce (Promotion and Facilitation) Act, 2020 is to unshackle farmers from notified markets.
Prime Minister Narendra Modi stated that small and marginal farmers “for the primary time, have gotten an alternative to bargain for the price of their produce. The custom earlier was to promote in mandis.”
Nevertheless, newest accessible survey information present that the majority small farmers have been already promoting their produce to personal merchants. Additionally, a majority of them have been unaware of the MSP programme.
Not a main alternative
Near 44% of produce (for 13 objects in chart, mixed) have been offered to personal merchants within the July-Dec. 2012 interval, 32% have been offered in mandis and 12% to authorities and procurement companies.
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Dimension issues
A majority of the farmers with a comparatively smaller parcel of land (<0.5 ha.) offered their produce to native non-public merchants whereas the next share of huge farmers (>1 ha.) took their produce to the mandis.
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Caught unawares
Solely 32% of households that cultivated paddy within the July-December 2012 interval knew concerning the Minimal Assist Value programme and solely 25% knew of procurement companies.
Provide and demand
Among the many households that have been conscious of the MSP programme however selected to not promote to procurement companies, a higher share cited unavailability of infrastructure (procurement company not accessible/no native purchaser) as the rationale for not going to mandis, whereas some stated they acquired higher costs than the MSP.
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Supply: Nationwide Pattern Survey 70th spherical