June 13, 2007

India's farmers ask government to retract decision on wheat imports 

Farmers from India are urging the government to withdraw its decision to import wheat and instead pay more for procurement.

A farmers' group led by farmers' representative Bharatiya Kisan Union leader Mahender Singh Tikait and farm expert Devinder Sharma said the government should offer higher MSP (Minimum Support Price) for farmers instead of importing higher priced wheat which will only benefit multinational grain corporations.

Punjab Mandi Board Chairman Ajmer Singh Lakhowal echoed the farmers' sentiments, saying there was no reason to import wheat at Rs1,150 (US$28.01) to 1,200 (US$29.23) per quintal (or per 100 kilograms) when there was plenty available within the country.

He said the government has been buying wheat at just Rs850 (US$20.70) per quintal in the domestic market, while it is ready to import at a higher global price.

On the bonus issue, Lakhowal said the farmers never sought bonus but only an increase of Rs1,140 (US$27.77) per quintal. He said the recommended MSP by the Commission for Agricultural Cost and Prices (CACP) was not based on the cost of production.

The farmers' group also alleged that imported wheat was bringing in new weeds, pests and diseases which could affect the domestic agricultural sector.

Agriculture and Food Minister Sharad Pawar last week said the country needed to import five million tonnes of wheat to raise the buffer stock position.