Author: Sharmila Bhowmick | TNN
Publication: The Times of India
Date: May 19, 2017
URL:    http://timesofindia.indiatimes.com/city/noida/farmers-reap-bumper-harvest-cash-crunch-ebbs/articleshow/58741646.cms

The bumper wheat harvest in April has restored the cash flow to the farmers of Gautam Budh Nagar who were reeling under a liquidity crunch only six months ago, an organisation of farmers has said.

According to Kisan Sangharsh Samiti, the state government's decision to procure the entire wheat stock of farmers, coupled with a hike in procurement rates, has translated into the cash flow for farmers.
The farmers are currently selling their produce at the rate of Rs 1,635 per quintal, which is the government rate. For private buyers, they are selling wheat at the rate of Rs 1,750 per quintal.

"This is the first time in the past three years that the farmers have managed to immediately sell their harvest. Most of them had a cash crunch that had built up due to crop failures. The wholesale crop trade is presently being carried out in cash," Dushyant Nagar, convenor, Kisan Sangharsh Samiti, said.

The government rate of procurement of wheat has increased from Rs 1,450 in 2016 to Rs 1,635 in 2017, resulting in an increase in the farmers' profit margin. According to KSS, private buyers, to remain competitive, have increased procurement rates to Rs 1,750 per quintal which is Rs 100 more than the prevailing government rate.

"Last year, the farmers faced immense difficulty in selling their wheat harvest. Some were even forced to sell their wheat at the rate of Rs 1,000 per quintal. Now, the strict regulation of buying-selling norm has begun to show a positive impact. Liquidity is very important for farmers so that they continue to invest in their agriculture and grow healthy crop," Nagar said.