A member of 15th Finance Commission and agriculture expert, Ramesh Chand said Chhattisgarh has highest potential to increase agricultural production but taking target oriented initiatives, as it has been in all these years, would not help.
He was answering to a query on agriculture sector during a press meet on Thursday, the last day of the commission’s three-day visit to the state.
He said procurement of paddy at Rs 2500 per quintal with Rs 700 as bonus on MSP is high. “But, when farmers’ benefit and paddy production are compared, something is missing. Production is at lower scale, which can be ratcheted up to 55 to 60%. There is a need to give attention on technology, making produce market driven and open market for competition, so that farmers can get higher price than the MSP,” he said.
Chand was of the view that government’s procurement at higher price would kill the market, eventually affecting farmers indirectly as government would end up procuring entire produces from farmers investing additional resources.
He felt that instead the government should concentrate on amendment of Agricultural Produce Market Committee Act (APMC) to reduce state spending on procurement and utilise the funds in enhancing irrigation facilities and allow market to play a key role on produce.
Specifically he said, “Chhattisgarh has scented varieties of paddy, which can be focal point for getting highest price for paddy than the MSP.”
The experts denied any tussle on Wednesday with political leaders on higher MSP for paddy procurement.