Paddy MSP increase to Cost GoI Rs.15,000 Cr – 0.1% of GDP

July06, 2018 (C) Ravinder Singh

Nearly 40 Crore Farmers grow paddy and GoI procurement bill shall go up by Rs.15,000 Cr means per capita additional income from procurement is only Rs.375 only as per The Hindu Story. This is just0.1% of GDP and 0.3% of Center & States budget.

Assuming Farm Surplus of 5 Crore Tones Paddy including Procurement by FCI – Rs.2000 Per Tones MSP increase actually means Rs.10,000 Cr Gains to Farmers – So real per capita gains to Paddy Farmers is only Rs.250 annually, barely enough for haircut at rural costs in a year.

MSP for Paddy 5 years ago was Rs.1310 and there is Rs.440 Per Quintal increase in 5 years to Rs.1750 – or Rs.88 Per Quintal average MSP increase. This 33.6% increase in 5 Years – Population increase of 10% and Inflation in 5 Years means no gains to Farmers.  

Since Farmers Themselves consume 60% of their own produce – even more when we consider INTER FARMER SALES, Bajra or Maize farmer selling their produce for Chicken Feed or Use up for Feeding Milk Animals.

Cash crops like Cotton, Soybean, Pulses are brought to market for sales but except for Cotton most crops are RAIN FED have very low yield.

Current Rainfall deficit is 7% – unless there is GOOD RAIN FALL there shall be little or no gains to Farmers in view of Low Yields.

Milk Prices are at lowest in many states – Procurement price of Sugarcane is not increased.

Ravinder Singh, Inventor & Consultant, INNOVATIVE TECHNOLOGIES AND PROJECTS

Y-77, Hauz Khas, ND -110016, India. Ph: 091- 8826415770, 9871056471, 9650421857

Ravinder Singh* is a WIPO awarded inventor specializing in Power, Transportation,

Smart Cities, Water, Energy Saving, Agriculture, Manufacturing, Technologies and Projects

Published by Naresh Sagar

Mentor MSME, Motivator, Media Event Org, Management fiscal & Water management.Social Media branding,Internet broadcasters,Propunder of Indian Philosophy

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