The Market Intervention Scheme (MIS) announced by the Union government for arecanut has concluded without any procurement.
As the prices of arecanut had slumped by about 10 per cent following the Union government decision to demonetise ₹1,000 and ₹500 notes, farmers were optimistic that MIS would result in recovery of prices.
However, as no procurement was made owing to the confusion prevailing regarding cost sharing and the guidelines to be followed for the process, the farmers have demanded that the Union government extend the procurement period.
The Ministry of Agriculture and Farmers Welfare had announced to procure arecanut through five cooperative societies in the State from December 7 to 31. It was decided to procure red variety of arecanut at a market intervention price (MIP) of ₹27,000 per quintal and chali variety for ₹25,100 per quintal.
However, the procurement process did not commence owing to the confusion prevailing between the Centre and State government on cost sharing.
The cooperative societies could not take up procurement owing to lack of proper directions from the Central and State government on finance, quality of the produce to be procured, and on the volume to be procured from small and marginal farmers. With the conclusion of the period of MIS without making any procurement, farmers are disappointed with the way in which both the Union and State governments have handled the issue.
H.R. Basavarajappa, general secretary, Karnataka Rajya Raitha Sangha has said that both the Union and State governments have become insensitive towards the problems faced by areca growers. It is a grave irresponsibility that the Centre made an announcement on MIS without issuing proper directions to the State on the cost issue. The State government has also failed to seek clarifications from the Centre in proper time in this regard. There was no proper communication between the Union and State governments over the issue owing to which areca growers have suffered, he added.
Rajappa, an arecanut grower from Siddapura village, had postponed the sale of areca at his disposal hoping that MIS would result in recovery of prices.
“As I have to clear the loan that I had borrowed from a moneylender last year for sinking a borewell in the plantation, I have to sell the produce for the prevailing price to clear the loan,” he added.
