Throughout the year, farmers bring produce to the Kurnool market yard to sell it. But this April and May, the yard sports a deserted look owing to scanty rain.
The district has registered a deficit rain of 50% and has been declared drought-hit. As most of the cultivatable land in the district is rain-fed, farmers have been hit hard by the deficit. Moreover, prices of various products have dipped.
Explaining the situation, Kurnool market yard chairman Purushottam Reddy said a few years ago, ₹10,000 per quintal was the price for red gram at the yard. However, this year, the price is only ₹4,000 per quintal. Similarly, chickpea is being sold at ₹5,400 per quintal.
This drop in prices has pushed farmers to look for alternative avenues to sell their produce, including privately-owned warehouses. Some farmers are in the wait-and-watch more, awaiting a better price. “Banks give loans based on the produce stored by farmers. So, sustenance is not an issue for big farmers who can manage to get loans from banks,” said Mr. Reddy.
Marginal farmers hit
However, marginal farmers who cannot store their produce are compelled to sell their produce at low prices.
Moreover, lack of funds has impelled the yard to dole out ₹60 lakh as the minimum support price for farmers. Currently, the market owes ₹6.1 crore to farmers, most of whom are marginal. “There has been a severe cash crunch at the market, and with the Model Code of Conduct in effect, the government could not release funds,” said Mr Reddy.
