In 2015-16, the Tur Dal (Pigen Pea) was selling at around 150-200 at retail counters. So, farmers opted for this crop in 2016 expecting good returns. Good monsoon across the country helped better yield and production. With increased inflow of the Dal, the market crashed and the price is now 20% below the Minimum Support Price. It is sold around INR 4000 per quintal whereas the MSP is around 5000 in many of the States.
It is a messy affair to sell at Government Procurement Centres and the formalities and procedures force farmers to sell in open market at a lower prices to save on transport and labour cost.
Two main reasons for this are a. Export is banned b. Huge stocking by traders in banned. Both these measures are aimed at controlling retail price. But surely NOT in favour of farmers.
WHEN GOVERNMENT WANTS TO CONTROL PRICES FROM GOING UP IN THE INTEREST OF PUBLIC, THEY SHOULD ALSO CONTROL PRICES FROM GOING DOWN IN THE INTEREST OF FARMERS.