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MINIMUM SUPPORT PRICE & THE QUALITY OF FARM PRODUCTION ASSOCHAM GLOBAL MEET on GREEN REVOLUTION II February 8-9, 2010 Ashok C. Khosla Agribusiness Consultancy.

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Presentation on theme: "MINIMUM SUPPORT PRICE & THE QUALITY OF FARM PRODUCTION ASSOCHAM GLOBAL MEET on GREEN REVOLUTION II February 8-9, 2010 Ashok C. Khosla Agribusiness Consultancy."— Presentation transcript:

1 MINIMUM SUPPORT PRICE & THE QUALITY OF FARM PRODUCTION ASSOCHAM GLOBAL MEET on GREEN REVOLUTION II February 8-9, 2010 Ashok C. Khosla Agribusiness Consultancy

2 CENTRAL POOL FOOD PROCUREMENT LARGEST INITIATIVE OF ITS KIND IN THE WORLD INDIAS PRODUCTION : WHEAT ~ 78 MMT, RICE ~ 94 MMT POOL PROCUREMENT : WHEAT ~ 12 MMT, RICE ~ 30 MMT STATE FOOD SUPPLY TO MEET SOCIAL OBJECTIVES SUBSIDIZED FOOD FOR THE LESSER–PRIVILEGED PUBLIC DISTRIBUTION SYSTEM BELOW POVERTY LINE & ABOVE POVERTY LINE FOOD SUPPORT SCHEMES

3 PUBLIC PURCHASE OF FOOD MINIMUM SUPPORT PRICE MINISTRY OF AGRICULTURE COMMISSION FOR AGRICULTURAL COSTS & PRICES COST ESTIMATION BASIS : C2 COST INPUTS, LABOUR, LAND USE FIELD DATA: A NETWORK OF AGRICULTURAL UNIVERSITIES LATEST STATISTICS POSTED :

4 THE GREEN REVOLUTION IN PUNJAB - 1 WHEAT PRODUCTION & WHEAT MSP

5 THE GREEN REVOLUTION IN PUNJAB - 2 THE C2 COST OF WHEAT PRODUCTION – Rs./Qtl

6 THE GREEN REVOLUTION IN PUNJAB - 3 FARMING PROFITABILITY FOR WHEAT & RICE AVERAGE FARM SIZE IN PUNJAB = 1 ha ANNUAL MSP INCOME FROM WHEAT & RICE = Rs ,884 VARIABLE COSTS AS DETERMINED BY CACP = Rs ,830 AVERAGE FARM FAMILY INCOME = Rs ,014 AVERAGE RURAL HOUSEHOLD SIZE (PER NSSO) = 4.8 persons PER CAPITA ANNUAL FARM INCOME = Rs.... 7,711 PER CAPITA FARM INCOME PER MONTH = Rs FARMERS GROWING MSP CROPS ARE BECOMING BPL THEMSELVES IS NREGA A BETTER OPTION THAN FARMING MSP CROPS?

7 THE GREEN REVOLUTION IN PUNJAB PERMANENT MANDIS & 1650 SEASONAL MANDIS PEAK PADDY ARRIVALS ARE 800,000 MT EACH DAY MANUAL DRYING OUT OF PADDY AT THE MANDIS

8 THE FUTURE FACE OF MSP AFTER 30 YEARS, NEW TERMS OF REFERENCE FOR CACP CACP C2 COSTS STRUCTURES TO NOW PROVIDE FOR: PRODUCERS TO BE SPECIALLY INCENTIVIZED MARKETING, INSURANCE, OTHER COSTS INCULCATION OF NEW TECHNOLOGY FAIR & REMUNERATIVE PRICES

9 THE GREEN REVOLUTION - II THE SECOND GREEN REVOLUTION HAS TO BE A QUALITY REVOLUTION FIRST - BRING QUALITY TO WHAT WE ARE PREPARED TO PAY FOR IT SECOND - BRING QUALITY TO HOW WE SHOULD BE FARMING IT THIRD - BRING QUALITY TO HOW WE HANDLE & STORE IT


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