Farmers Movement Archive

Banning futures in 7 agri items gets flak from farm activists

Nagpur: The government’s decision to ban futures in seven agriculture commodities has raised concern among farm activists who say this would ultimately hit the farmers who could have benefited from higher prices of the items. The move, however, got support from spokesperson of Bharaitya Kisan Union (BKU) which had been leading farmers’ agitation in Delhi against the three farm laws. BKU spokesperson Dharmendra Malik told TOI that the union has been against futures in farm produce because it rigs the prices to disadvantage of farmers. “Market operators bring the prices down at the time of harvest benefiting the traders. After farmers end up selling the produce, the rates are jacked,” he said. The move draws flaks from outfits including the Shetkar Sangathana which had supported the three farm laws now withdrawn by the government. It’s being said that banning futures goes against the government’s own policy of dismantling price control regime, which was aimed through the laws. Even as the decision is aimed at reducing price of commodities, it would to be at the loss of farmers, said experts. The Centre through a notification issued late on Sunday has banned futures trade in non-basmati paddy, wheat, chana, mustard seeds, soyabean, crude palm oil and moong. Crops like soyabean and chana concern the farmers in Vidarbha. The cultivators here were expecting better returns due to soyabean prices touching Rs9,000 a quintal this year. A section of farmers are still holding on to the produce hoping for the rates to jump again. Currently, soyabean is in the range of Rs6,500 to Rs7,000 a quintal, said sources. Vijay Jawandhia, a veteran activist from Wardha, said that if the move may help consumers, it would affect the farmer also by bringing down the prices. “The government wants to link farmers to a high cost economy but keep their income low. It may not be possible to match the segment to high social cost due to such decisions” said Jawandhia. “Instead of banning futures there can be other controls like upper circuit if the prices go beyond a certain level,” he said. Shetkari Sangathana president Anil Ghanvat said the decision is expected to have a straight impact on the farmers’ income. He said farmers were hoping to profit out of soyabean prices which are now expected to slip even below the MSP. “The poultry lobby is already pushing for lower soyabean prices because it is the input for chicken feed. The decision will also benefit oil millers, now it is to be seen whether the reduction is passed on to the consumers,” said Ghanvat. There are already reports including government data that chana is expected to be in surplus, which means that the rates would come down after the harvest. “So, is it with mustard seeds,” he said. Meanwhile, soyabean prices were reported to have slid to Rs4,600 in Washim The average rate, however, remains in the range of Rs6,500 to Rs7,000 quintal. On the other hand, Chana is already ruling below MSP in Vidarbha’s markets. At Rs4,350 a quintal, it took a hit of Rs150 on Monday. The MSP is at Rs5,230/quintal. Kishore Tiwari, the chairman of Vidarbha Jan Andolan Samiti, also flayed the decision.

The Times of India

2021-12-21

Nagpur