The Hindu : Andhra Pradesh / Hyderabad News : Ryots skip Markfed centres, sell maize in open market

Online edition of India's National Newspaper
Monday, Dec 24, 2007
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Andhra Pradesh

Andhra Pradesh - Hyderabad

Ryots skip Markfed centres, sell maize in open market

Ravi Reddy

- Photo: Ch. Vijaya Bhaskar

Bumper crop: Harvested corn spread out for drying on the outskirts of Vijayawada.

HYDERABAD: Hopes of the Andhra Pradesh State Cooperative Marketing Federation Limited (Markfed) to procure maize at the minimum support price (MSP) lay shattered as farmers started selling their produce to outsiders at higher rate.

The Centre had announced Rs. 620 MSP for maize, while the going rate in the market is Rs. 670 and above. As against the target of procuring 6-lakh tonnes through 400 procurement centres in the State, Markfed could buy only 60,000 tonnes so far valued at Rs. 52 crore. Bumper crop and higher rate has dampened the spirits of Markfed officials to procure more stocks at MSP.

Maize was procured by Markfed, District Cooperative Marketing Societies, Village Organisations run by Indira Kranti Patham (IKP).

Presently, maize procurement is on in Nizamabad, Karimnagar, Adilabad, Warangal, Mahabubnagar, Medak, Ranga Reddy, Anantapur, Kurnool and Khammam.

Markfed had made elaborate arrangements to procure maize in anticipation of bumper crop and good MSP.

It had hoped to purchase 1.50-lakh tonnes of maize in Karimnagar alone but the procurement of 11,282 tonnes was far from satisfactory.

Similar was the case with Nizamabad, where maize is cultivated in a big way. Markfed could procure 14,617 tonnes till Tuesday against the target of 1-lakh tonnes. In Mahabubnagar, 18,264 tonnes had been procured.

Markfed chairman Ponnam Prabhakar said that farmers were lured by the traders with the promise of higher price.

“Markfed started procurement from October 1 in 400 centres in the 10 districts. But, the rates suddenly went up after Deepavali resulting in poor arrivals in the Markfed centres,” he pointed out.

He said poultry sector in the State directly approached the farmers with promise of higher prices. So was the case with multinational companies, which set up village level purchase points to buy the produce.

As the demand for maize, which is used for over 50 by products, grew, the rates also picked up, Mr. Prabhakar said.

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