Figures Say:Gujarat’s Farmers Earned More Profit this Year

Rise in inflation has raised the prices of agricultural commodities
in Gujarat. However this has also contributed to an increase in
farmers’ income. This year Gujarat’s farmers are earning about 25% more
than last year, on crops such as rice, cotton, groundnut, cumin and
mustard. Rice has been the highest earner with price touching Rs.410
per quintal(20 Kg)-an increase of 107% in fiscal 2008.

However it must be noted that though farmers obtain high prices than
the last few years, production costs, including that of fertilizer,
pesticides, seeds, electricity and diesel, have also increased. This
has put a dent in farmer’s profit margins.

Other important thing is that stockists earn more margins than
normal farmers. So, farmers who want to earn more need to create stock
capacity so that, they can demand higher costs from traders in the off
season.

Farmers could profit even further if middle agents, who get higher
returns than the farmers are removed from the commodity market.

Gujarat Farmers’ Comparative Earning Chart
Per 20 Kg. Earning in Rs.