Kerala is the first state to announce support prices for vegetables

- Commodity Current: Jayavadan Gandhi

After nearly a year-long peasant agitation, Prime Minister Narendra Modi's announcement on the sudden withdrawal of three controversial agricultural laws on the last Guru Nanak Jayanti day sent shockwaves through the country. Modi, who has the ability to make unexpected announcements, has given an incredible gift to the farmers by announcing the repeal of another agricultural law. At the time of important decisions in the agricultural sector, a committee was formed to promote zero budget farming i.e. to promote natural organic farming, to change crop patterns in a scientific manner keeping in view the needs of the country and to make support prices transparent. To quell the anger of the farmers as well as to achieve political success in the forthcoming elections, the Modi government has adopted a comprehensive strategy of killing many birds with one stone.

The desire of many big companies to turn the agricultural sector into a corporate one has been turned upside down but the current decisions show that the government is moving in the direction of bringing maximum affordable prices to the farmers by competing in agriculture. The government as well as farmers in particular are now pushing for the implementation of support prices. The support prices of 7 to 8 agricultural products with seven grains, five pulses, seven oilseeds and four commercial crops are fixed by the Agriculture Commission every year. To date, however, vegetables and fruits have not been included in support prices. As a result, farmers are forced to sell their agricultural produce not at their own will but at the price fixed by the traders. Recently, the Kerala government became the first state in the country to announce support prices for vegetables for the first time. After Kerala, the Haryana government has also started the process of announcing support prices for vegetables. Support prices are usually announced with a 20% increase in the cost price of agricultural crops. Even looking at the support prices for kharif and rabi seasons, a very genuine peasantry is motivated to cultivate those crops. In the first phase, the Kerala government has fixed support prices for about a dozen vegetables.

After the completion of the mission to repeal the agricultural laws, the farmers are now demanding a law to ensure 100 per cent implementation of the support prices announced by the government. At present the government announces support prices every season but many agricultural commodities are being sold below the support prices. Farmers are demanding a 100 per cent legal guarantee to meet the support prices. In many states, government procurement has been done in the past at lower prices than the support prices announced by the government. Due to which private traders are also getting open ground. In short, the peasantry is feeling that the government system of support prices is like an ornament. Many APMCs have also been relieved by the repeal of agricultural laws. The concessions given in the law to traders to do business outside the APMC area as well as non-payment of cess have hit the income of many genuine APMCs in the country hard and have also led to stagnation in the salaries of employees. Now there is talk of celebrating the repeal of agricultural laws.

Meanwhile, last week's Mawtha in the state is likely to have far-reaching effects on sowing. The boom and bust depends on which crop will be planted and how much will be sown. However, prices of spices, oilseeds and pulses have been bullish. The potential for a big boom, especially in cumin, has become widespread.

Farmers' sales have slowed down as the soybean market, which had plunged to a low of Rs 4,000 crore during the season, is now likely to rise sharply to Rs 500 crore. Stockists' goods are currently coming to market. Rising prices due to open demand from soybean planters are expected to jump above Rs 2,000.