Regulations on groundnut subsidy sound death-knell for farmers

• Lack of awareness of officials to be blamed
• Seed procurement agencies playing truant
• Burdened by indiscriminate fixing of targets

Anantapur: Regulations being imposed by officials without proper awareness and understanding of the problems are proving to be the death knell for groundnut farmers, who are facing crises following delay in receiving relief from the government.

The regulations with regard to annual subsidy on groundnut have become a problem for the farmers. Officials insist on payment of the entire amount for seeds for disbursing seed. This is causing a burden to farmers to raise loans. Officials are receiving flak for not having foresight and not following a clear plan in their discharge of duty. They insist on payment of entire amount by farmers for the six lakh quintals of groundnut seed supplied every year. They say that the seed would be supplied by the Markfed, AP Seeds, HACA and Oil Fed only if the Agriculture department pays the entire amount.

This stipulation is severely affecting farmers. These agencies are not clear from where the seeds are to be procured.

They are further handicapped by fixing of targets, in some cases indiscriminately. The AP Seeds has been given a target of one lakh quintals, while the balance of five lakh quintals is to be raised by the other agencies.

Markfed has already declared that it won’t raise its quota, while AP Seeds has signed an undertaking to supply only 69,000 quintals, as against the target of 2.5 lakh quintals. As a result the government is forced to supply substandard seeds to farmers.

A quintal of groundnut seed in the open market is selling at Rs 4,500. The government is arranging to provide the seed along with subsidy at the same rate. Last year it was able to supply at Rs 3,500. This year the government is insisting on payment of Rs 3,500 plus the subsidy of Rs 1,500 for its release under cash transfer scheme.

This stipulation is likely to burden farmers to the extent of about Rs 90 crore. The newly-elected people’s representatives and farmers’ organisations are angry with such conditions being imposed by officials. The representatives are assuring farmers that they would take up the issue with the government to ensure that the seed is provided at the actual rate.

Normally the seed disbursing agencies are supposed to periodically review, at least six times as is the case in Kurnool district, the groundnut production/crop after reaching agreements with farmers. They have also to certify that only quality product has been produced. Besides, the agencies have to supply only the permitted seed. But the ground reality is different.

Because of the indiscriminate fixing of targets, the agencies are forced to purchase seed in the open market wherever convenient.

As a result, the hopes of farmers to secure quality seed have been shattered. Such a situation could be avoided if only the government has an advance plan of action and fool-proof seed procurement.