The agri-commodities is not looking good as the MSP (minimum support price) for rabi crops have seen only moderate increase of 5-6 percent. It barely covers the recent increase in price of diesel, phosphatic and potassic fertilisers and pesticides.
The drought-like situation in five states is also affecting the farmers. Central government has approved procurement request from nine states but various kharif arrivals are below MSP.
In fact, prices of 12 among the 14 kharif crops are below MSP since the arrival of the summer crop. Five of these crops namely paddy, tur, groundnut, niger and ragi have been on a continuous decline throughout the season.
Other crops are above October lows, but still below MSP. So does this mean it was another grim Diwali for small farmers? Siraj Hussain, former agriculture secratary; T Gnanaseka, director, Commtrendz Research & Fund Management and Arun Thukral MD and CEO, Axis Securities discuss the issue.