Centre and Telangana government spar on chilli prices issue

Hyderabad: The matter of the minimum selling price (MSM) for chilli has become a contentious one between the Telangana government and the Centre. The TS government is seeking the help of the Centre to come to the rescue of chilli farmers, but the Centre holds the state government responsible for not complying with the required norms to get financial assistance.

The TS annual budget (2017-18) had no mention of sanctioning funds for the Market Intervention Scheme (MIS), which comes to the rescue of farmers whenever prices drop sharply and which is a pre-requisite to claim the Centre’s assistance. The state government has to create Rs 500 crore fund first to seek the Centre’s assistance for chilli farmers. Normally, the state government allots funds to the marketing department under MIS in the Budget every year. But this year, there is no such provision in the Budget. The government had sanctioned over Rs 250 crore to MIS in the previous two budgets.

Though no reasons were cited by the government for not sanctioning funds for MIS, official sources said it could be due to non-utilisation of these funds during previous years, and the government had not anticipated that chilli prices would fall to such an unprecedented low. Marketing minister T Harish Rao has brushed aside the state’s culpability and has accused the Centre of running away from its responsibility of ensuring MSP to farmers.

“The marketing department was allotted over Rs 1,000 crore in the Budget this year. We can make a provision for using a portion of this for MIS. It’s not a big deal. The Centre is unnecessarily trying to create an issue. The responsibility of ensuring MSP for farmers lies more with the Centre than the state government as it decides MSP for crops. If the Centre is sincere about helping farmers, it can straight away extend financial assistance to states. But BJP leaders in the state are trying to find lame excuses for the Centre denying help to the state,” Mr Rao said.

Union Minister Bandaru Dattatreya dismissed the allegations levelled by TS ministers and TRS leaders against the Centre. “The Centre is willing to help chilli farmers. But there are certain procedures which the states need to fulfil. First, they have to sanction funds and start purchasing from farmers directly. Then it can approach the Centre for help by sending required proposals. The Narendra Modi government is farmer-friendly and ready to extend any help to farmers in any state. Without following due procedures, it is unfair to blame the Centre,” he said. Mr Harish Rao has written to the Centre twice seeking help for chilli farmers besides sending marketing officials to Delhi to pursue the case with the Centre.