A Raw Deal
India Business Journal|September 2017

Even after 25 years of economic liberalisation, Indian farmers continue to be let down by governments, policies, prices and markets.

A Raw Deal

It was yet another bountiful, but bitter, harvest for Indian farmers last year. The 2016-17 crop year (July 2016-June 2017) threw up an all-time high foodgrain production of 273 million tonnes (mt). Last year's rich harvest was further pushed up by a spurt in output of perishable horticulture crops, like fruits and vegetables, to 287 mt. During the same period, production of pulses, oilseeds and sugarcane grew to 22.14 mt, 32.5 mt and 306 mt respectively.

Ironically, the bounty across the country's farmlands only brought misery to farmers as prices of most crops crashed severely. Early this year, prices of pulses, including tur (pigeon pea), moong (green gram) and urad (black gram) plummeted below their respective MSPs - minimum support prices (the floor prices fixed by the government for 25 crops, including cereals - like rice and wheat - and pulses, among others, to protect farmers against price crash).

The gloom was not limited to pulses alone. The year 2017 began on a shocking note for growers of horticultural crops, especially volatile tomato and onion. Tomatoes and onions plunged to unbelievable lows of Re 1 and Rs 5 per kg respectively briefly at the beginning of the year.

Reasonably good monsoon in 2016 - though it was yet another dry year for most parts of south India - after back-to-back droughts in 2014 and 2015 pushed up farm output. The inevitable law of demand and supply did play its part in diminishing prices of crops. However, other factors were responsible for pushing prices of pulses and a few perishables, like fruits and vegetables, to abnormally low levels.

This story is from the September 2017 edition of India Business Journal.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the September 2017 edition of India Business Journal.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM INDIA BUSINESS JOURNALView All
Top Crisis
India Business Journal

Top Crisis

Short-term, consumer-centric measures have left the tomato, onion and potato farmers struggling to eke out a living.

time-read
10 mins  |
November 2019
Boon Or Bane?
India Business Journal

Boon Or Bane?

With some adequate safeguards, the government's e-assessment scheme can be a win-win situation for both tax department and taxpayers.

time-read
3 mins  |
November 2019
Revisiting Development
India Business Journal

Revisiting Development

Sustainable development is the way forward for India, which is in the midst of an economic downturn, ecological crises and stark human distress.

time-read
10+ mins  |
November 2019
The Cabotage Debate
India Business Journal

The Cabotage Debate

Relaxation of Cabotage rules has pitted foreign shipping lines against domestic shipping companies.

time-read
4 mins  |
November 2019
Catch-22
India Business Journal

Catch-22

India finds itself in an unenviable position, as it weighs the pros and cons of joining RCEP.

time-read
4 mins  |
November 2019
Accept Mistakes Quickly
India Business Journal

Accept Mistakes Quickly

Anto Binish Kaspar is a firm believer in technology.

time-read
5 mins  |
October 2019
We Will Have 30 Franchisees By 2020
India Business Journal

We Will Have 30 Franchisees By 2020

Naresh Sharma , CEO , Skora paints

time-read
5 mins  |
October 2019
The Revival Conundrum
India Business Journal

The Revival Conundrum

Along with a patchwork of band-aids, a smart combination of monetary and fiscal measures can get the ailing economy back into the pink of health.

time-read
10+ mins  |
October 2019
Mahatma Gandhi @150
India Business Journal

Mahatma Gandhi @150

The Mahatma firmly advocated that this world has enough for everyone's need but not greed. Gandhian economics, no wonder, cannot be more relevant today in times of erratic economic development, jobless growth and adverse climate changes.

time-read
2 mins  |
October 2019
Bitterness Lingers
India Business Journal

Bitterness Lingers

A hike in subsidy does little to boost exports, thanks to a glut in the global market, and leaves sugar prices subdued in the domestic market.

time-read
6 mins  |
October 2019