GULBARGA: The State Government on Saturday announced the minimum support price (MSP) for red gram at Rs. 1,800 a quintal for Grade A quality of the produce and Rs. 1,720 for B grade quality.

It has also decided to intervene in the market by directly purchasing the produce from farmers from Monday by establishing procurement centres throughout the district.

Agriculture Marketing Minister Sharanabasappa Dharshanapur, who is also the district in-charge Minister, told presspersons here that the MSP for red gram has been fixed after taking into consideration all the factors, including the prevailing market price and the average cost of cultivation.

He said this year's MSP was in comparison to Rs. 1,750 a quintal for Grade A and Rs. 1,700 for Grade B fixed last year.

The Minister said the Government would consider increasing the MSP for the produce and explore the possibility of announcing a bonus of either Rs. 20 or Rs. 10 a quintal this year to benefit the farmers.

Mr. Dharshanapur said the MSP for red gram was fixed after detailed discussion with Agriculture Commissioner E. Venkataiah, who is also chairman of the Red Gram Development Board (RGDB), on Friday at Bangalore.

He admitted that the RGDB had made some profit from the sale of the procured red dram in the last two years and the government would consider transferring the profit to farmers by announcing a bonus in addition to the MSP.

Basavaraj Ingin, President of the Karnataka Red Gram Growers' Association, termed the MSP as disappointing. He said the association had been demanding that the Government give up the policy grading and announce a single MSP for the produce Red Gram and fix the MSP at Rs. 2,500 a quintal. He urged the Government to reconsider the MSP and fix it at Rs. 2,500 a quintal. However, he welcomed the decision of the Government to intervene in the market from Monday.

Mr. Dharshanapur said that the RGDB would establish procurement centres initially in Sedam, Chitapur and Chincholi taluks from Monday. Such centres would be set up in other taluks and Bidar district later.

The board has decided to establish a minimum of 25 procurement centres this year and increase the number depending on the demand at that time.

Market price

He said that the prevailing market price of red gram in Gulbarga and Bidar district was Rs. 1,875 a quintal and the decision to intervene in the market in the beginning of the season this year was to ensure that the price of the produce did not crash after the arrivals of the fresh stocks reaches its peak.

The board hopes to procure a minimum of 50,000 quintals of red gram this year as against 60,000 quintals procured last year.

The board has a reserve of Rs. 7 crore and the State Government would release another Rs 10 crore from the revolving fund to procure the produce.

According to estimates prepared by the RGDB, the output of red gram is likely to be 16.29 lakh quintals this year as against 21 lakh quintals last year. The fall the in the production is due to failure of rains and high incidents of pest attack.

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