Peanut Market News February 07, 2019
The Saurashtra Oil Mills Association (Soma), an industry body of oil extractors, has expressed reservations over minimum support price (MSP) for groundnut crop saying that higher MSP was not a solution to farmers’ problems.
Instead Soma has suggested better storage facilities and enabling environment so that farmers can get better price for their produce.
The industry body will be making representation regarding this before the Commission for Agricultural Costs and Prices (CACP), under the union ministry of agriculture which will meet on Thursday in Delhi to formulate pricing mechanism for deciding the MSP for Kharif crops for 2019-20.
Soma president Samir Shah said, “Announcing higher MSP for farm produce is not a solution to farmer’s problems. There is a need to create environment where farmers get reasonable price from the market itself. We are going to make representation on this to the CACP.”
He said they will also make suggestions regarding use of groundnut oil in domestic market and curbing the import of edible oils.
In a statement issued on Wednesday, Soma listed major points of concern to be raised before the CACP. This included making distribution of domestic edible oil through Public Distribution System (PDS) mandatory.
Soma has also suggested that farmers should be given better facilities to store their produce after paying a token rate. They have also suggested 60% advance in lieu of stored goods. The stored goods or crops should be categorized as mortgaged assets.
Soma claimed that by doing this farmers will get reasonable price for their produce.
The oil millers’ body also wanted government to make the provision for ready made namkeen industry to use at least 25% domestic oil for production. They also suggested that state government and semi government agencies use locally produced edible oil to prepare mid-day meals.