ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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NEW DELHI-Is the Procurement Price Too Low

NEW DELHI Is the Procurement Price Too Low?
WHILE the government is succumbing to the pressure for higher procurement prices for the marketed surpluses in foodgrains controlled by the big farmers, it may not be amiss to look at the facts regarding the cost of production of principal foodgrains on which the case for higher procurement prices is sought to be based. The Food and Agricultural Ministry initiated in 1968' a Comprehensive Scheme for studying the cost of cultivation of principal crops. The technical details of the scheme were worked out by the Institute of Agricultural Research Statistics on the basis of the recommendations of a Standing Technical Committee. The study has been carried out in collaboration with agricultural universities, the agro-economic research centres and other competent institutions. Its first reports under the comprehensive schemes are available and cover the cost of production of wheat in Haryana and Punjab during the 1970-71 season and the cost of production of wheat during the 1971-72 season in respect of setected holdings in Uttar Pradesh. A great deal of more work has yet to be done under this scheme. But the data for wheat already give a fairly reliable picture of the cost situation for this crop. The conclusions of the study completely demolish the argument that the cost of production of wheat is not covered by the procurement price fixed by the government and that higher price and additional incentives are required to make wheat farming "emunerative and profitable.

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