Hyderabad: With the market intervention fund drying up, Markfed (Cooperative Marketing Federation) is facing financial problems in purchasing commercial crops from farmers. It is borrowing from private banks to purchase commercial crops.
The government stopped allocating money for the fund in the Budget for the last two years. Before that, it had allocated about Rs 500 crore for the purpose.
An official of the agriculture department said that a peculiar situation has arisen this time due to the rates of commercial crops.
The area of crop sown and production had reduced but the demand and prices had not increased. A senior official said, “We are not able to understand the situation.”
Markfed has purchased 8,290.15 metric tonnes of maize at Rs 1,425 per quintal, 407.80 metric tonnes of green gram at Rs 5,575 per quintal and 214.74 metric tonnes of black gram at the rate of Rs 5,400 per quintal. The state government is waiting for the Centre’s permission to purchase soyabean.
Farmers have cultivated soya bean on 1.65 lakh hectares in Adilabad, Nir-mal, Nizamabad, Kama-reddy and Sangareddy districts.
The government is expecting that the minimum support price for soyabean would be Rs 3,050 per quintal. But officials said the Markfed had no funds to purchase soyabean and would have to borrow from banks.
A senior official said that the Telangana state government has to allocate Rs 500 crore to Rs 1000 crore in the budget for the market intervention fund. He said the department would utilise these funds only if it was necessary.
