AGRI CRISIS IN STATE
Context: There is a simultaneous price drop in the state for many food crops as well as cash crop. As a result farmers are incurring heavy losses.
REASONS FOR THE DROP IN PRICES:
- Increase in production, decrease in demand and import- export imbalances are being cited as reasons for this imbalances.
- Even though there is enough rice production in the state, rice is purchased from other states for ration requirements.
- Iran has stopped purchasing basmati rice from India and the Country’s rice export has dropped by almost 29%.
- Cheap imports from Vietnam, Brazil and Indonesia.
- Due to heavy import of maize from Bihar and other states there is fall in demand.
- Slow economic growth, import -export mismatch among others can be cited as some reasons for fall in prices.
REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP (RCEP)
There is a fall in prices of arecanut and rubber as well.
There are apprehensions that if India agrees to the FTA of RCEP the prices of crops may fall further.
There is an increasing demand from CAMPCO to keep Arecanut and pepper outside scope of RCEP.