Punjab recommends higher prices for pulses, maize, groundnut

Ludhiana, July 26 (UNI) To encourage cultivation of alternative crops to promote diversification in agriculture, the Punjab Agriculture Department has suggested giving higher prices for pulses, groundnut, maize than paddy.

This suggestion contained in the 'Price Policy for Kharif 2006-07', prepared by the Agriculture Department has been forwarded to the Union Agriculture Ministry by the state government.

The suggestion made by the agriculture department are based on calculations by a team of Punjab Agricultural University (PAU) economists led by Head of the Department of Economics, Dr A S Joshi.

The state has suggested a Minimum Support Price (MSP) of Rs 743 per quintal for common paddy varieties and Rs 817 per quintal for grade 'A' paddy.

They have supported their hypothesis of higher price for kharif crops taking into account ''weather risk and management, marketing costs and parity with wholesale price index and input index'' with as the base year 1970-71.

Dr Joshi today said the data with regard to cost of cultivation of various variables for Kharif had been worked out on the basis of average of three years, 2000-01 to 2002-03. The sample survey involved 300 farm families, across Punjab.

He said in respect of cotton, the cost of cultivation comes to Rs 2835 per quintal. ''Since this cost of production is higher than the parity price, the MSP demand of Rs 2835 per quintal should atleast cover the cost of production'', he added.

Referring to maize, Dr Joshi said it was an important alternative crop and to promote it, farmers should be discouraged from sowing paddy.

Since Punjab is doing its best to divert area from paddy to maize to save on water and restore soil health, PAU has suggested that the support price of maize should be increased by at least 10 per cent.

Dr Joshi said no data on cost of cultivation of pulses groundnut was available. ''We have recommended 30 per cent increase for these crops over the price of 2005-06'', he added.

While calculating the cost of cultivation, PAU economists have taken coganisance of the price percentage increase in 2006-07 in respect of machinery, irrigtion, seed, fertiliser, manure and pesticides, insecticides and weedicides.

UNI HS AK DB1059