Farmers stare at dull Diwali as prices of Kharif crops rule below MSP

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Farmers are looking at a dull Diwali as the prices for most of the Kharif crops are ruling below minimum support price across markets, reports The Hindu BusinessLine.

The newspaper report quoted that poor demand, higher stock and an aftermath of demonetisation are a few factors weighing on the prices of crops such as green gram, black gram, groundnut and soyabean.

Most of the farmers have been forced to sell their produce at a lower prices as they have to pay off their debts and want to minimise the losses.

This, despite the Centre's initial estimates suggesting lower commodity production this year, except for the 17 percent higher production of the black gram on higher acreage.

At the request of some states, NAFED has started procurement of pulses in Karnataka and Telangana and will start procurement in other states soon.

To help farmers get good price for their produce, Centre has granted permission for export of pulses and put restriction on imports of pulses.

Experts believe that prices have bottomed out, but the new arrival pressure may keep prices under check.