Middlemen have walked away with most benefits, while consumers have bore the maximum brunt of price rise in the past five years, says a study by ASSOCHAM.
The study says the average difference between wholesale prices and the minimum support prices (MSPs) during 2002-07 was 33 per cent, while the consumers paid 60 per cent more than the wholesale price, says the study ‘MSP Vs WSP and Their impact on Retail Prices.’
“Barring wheat and paddy, MSP and wholesale price (WSP) differential for pulses like moong, urad, gram and arhar on an average was 33 per cent during 2002-07,” the ASSOCHAM study said. The gap hit hard both farmers and consumers with all the benefits reaching traders as farmers receive the MSPs, decided by the government while consumers pay rates, decided by traders. The price differences are unlikely to be reversed.
The study found the gap was highest in moong at 45 per cent in the review period. “Wholesale prices benefited multiple times middlemen and traders, and worst hit farmers and consumers,” Venugopal N Dhoot ASSOCHAM President said.
He hoped that with retail players; Reliance, Subhiksha and others opening up outlets, consumers would benefit and farmers would get reasonable price for their produce.
