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| MIS fails to achieve higher returns to growers | | | GOPAL GUPTA
EARLY TIMES REPORT
JAMMU, July 22: Market intervention scheme (MIS) failed to make an impact on ground and instead of benefiting the grower, 20 percent of beneficiaries covered under the scheme were traders, pre-harvesting merchants and other non-growers who had provided 53 percent of the fruits procured under the scheme by them.
Though the growers constitute 80 percent of the supposed beneficiaries yet they provided only 47 percent of the total fruit lifted under the scheme. Besides, achievement on financial side was 45 percent and on physical front, it was just 43 percent of the targets. The scheme also miserably failed to fetch higher returns to the growers despite government claim of improvement in grading and quality up-gradation.
Instead, the average wholesale rates of apple amazingly decreased throughout the implementation period of MIS as compared to period prior to it. This spine chilling picture has been brought forth by an evaluation study report on the implementation of "Market Intervention Scheme (MIS) in Jammu and Kashmir prepared by Directorate of Economics and Statistics (E&SD).
The scheme was introduced in 2003-04 for purchase of culled and C-grade apples and sandy pears to ensure that only quality fruit is sold in market, has also been introduced. According to the report, implementing department has not been able to utilize allocated financial resources fully and resultantly, the physical targets, which were already short of desired quantum, were not achieved. It maintains that achievement on financial side was 45 percent and on physical front, it was just 43 percent of the targets.
Alongside this, 70 percent of grower beneficiaries were dissatisfied over delayed payments which hampered orchard operations, particularly of small and marginal growers. On-spot payment was essence of the growers, reports maintain that in view of urgent and high input costs, they have to bear to maintain and sustain their orchards.
The report further says that during the period of implementation of MIS, 15 processing units were provided fruit of whom FIL Industries Limited Srinagar claimed 64.20 percent of procured fruit followed by Jammu and Kashmir Horticulture Planning and Marketing Corporation (JKHPMC) which got 29.56 percent share of procured fruit.
It maintains that information collected under field enquiry revealed that net average rate of "C" Grade box of 17 Kgs in respect of sample beneficiaries was Rs. 44 in the local market and Rs. 41 in the export market during 2005-06 as compared to Rs. 68 offered under MIS during the same period and Rs. 85 for 2006-07 onwards.
Further, 8 percent beneficiaries were reported to have got occasionally negative returns before MIS in respect of "C" grade apple exported to different terminal markets of the country, as a result of too low rates which could not cover overhead and transport charges borne thereon. The reports further says that in Pulwama, Shopian and Kangan, fruits were provided under MIS by some middlemen after obtaining from fruit growers at Rs. 40 to Rs. 50 per box, leaving them completely unaware of the scheme.
The report points out that during the survey, not a single non-beneficiary grower revealed to have withheld his "C" grade produce in spite of his awareness and opportunity to provide. They disclosed that they were normally selling their "C" grade produce at much lower rates than the one offered under MIS.
Report has further said that annual production of processing units showed increase during the first four years of MIS implementation but towards the end it even got below the baseline of 2002-03 by 17 percent, adding that decline was due to the poor performance of MIS during the year.
The report has concluded that main suggestions to be acted-upon for improvement in MIS implementation are restriction of scheme to small and marginal growers, collection of fruit under contract arrangement, amendment in distribution pattern of fruit among processing units, awareness especially through print and electronic media, operationalisation of MIS in beginning of harvesting season and provision in scheme modalities for specifying the intervention of traders and pre-harvesting merchants in MIS.
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