Indian farmers are currently being met with a mixed blessing of plenty. A bumper crop has led to procurement prices plunging, pushing them deeper into the depths of despair.
The agricultural ministry estimates that 273 million tonnes of vegetables will be produced this year, but it is unlikely that either the farmers or the consumers will benefit. Only middlemen stand to gain since the Agriculture Produce Marketing Committee laws bar farmers from selling their produce directly in local markets. They can sell only through commission agents.
The Reserve Bank of India has already sounded an ominous warning, stating that the crisis could spread further with the market price of pulses hovering well below the minimum support price (MSP).
Vegetables are perishable and growing them entails a fair degree of risk. But recent trends show more farmers growing vegetables, setting off a vicious cycle of glut followed by falling prices.
