In the absence of retail stores for the agriculture produce, the traders continue to rake in huge profits at the cost of farmers. The potato farmers had to sell their produce at the rate of Rs 100-120 quintal in April last while the retail price of potato remains at Rs 1,000 per quintal.

The wheat farmers also suffered during the rabi season in March-April 2008, as the government refused to issue licence to private companies to make direct purchase from the farmers. The farmers were forced to sell wheat at Rs 950-975 per quintal to the ‘Arathia’ appointed by the state Government. The Arathias had the best of both the worlds, as they exploited the farmers and also bagged a commission of Rs 65 crore at the rate of 2.5 per cent from the government for the total wheat purchase from the farmers.

Decades of neglect of the agriculture and allied sector in UP has resulted in the stagnation of the sector. UP achieved the highest growth rate of 9.7 per cent during the Sixth Five Year Plan (1981-85) period. During the Ninth Five Year Plan (1997-2002), the growth rate dipped to lowest-ever to 0.8 per cent.

During the first five FYPs, from 1951-1979, the plan outlay for the agriculture sector in UP was double digit, ranging between 24.69 percent to 13.69 per cent of the total plan outlay. In subsequent five year plans, from 1981 to 2007 till the end of the 10th FYP, the outlay for this sector fell to single digit, between five to seven per cent. During the current 11th Five Year Plan, the outlay is expected to marginally cross 10 per cent.

... contd.