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low point registeredinin Figure W3for for late October
and early November represents deliveries
made priortoto storageof of the new paddy harvest.
Despite some of of the
difficultiesinin implementation,
thereisisno no question that the stability
createdinin the selling pricetoto the farmer
has stimulated his greater effortstoto develop
water resource, mobilize credit, increase in­
inputs
and becomeaa better farmer. It Itisis the fuel
of of the Green Revolution.
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FIGURE W3.
Pricesfor for three gradesofof wheatonon
the the Hapur (Uttar Pradesh) market, quoted for for
each Saturday from August9, 9, 1969toto June13,
13,
1970.
for for the consumerisis still variable. To To reduce
these fluctuations the government would re­
require
larger buffer stocksfor for increasing sales
in in the marketas as prices rise. It Itisis now considered
that stocksof of77 million tons will be bere­
required,
in in ,the .the buffer supply.
On On the other hand, the increased affluence
of of farmers from record returns in in previous
years, now allows them to to hold more of of the
stocksoff off the marketinin the post harvest periodtoto
take advantageof of higher prices later
in in the season.
This has resultedinin slow deliveries
and some doubtisis expressedasastoto er er the government willbe be abletoto procureits
its
1970 targeted stocks. For the whole country
the Central government hopestotobUy buy 4.8 million
metric tonsof of which Punjab would supply
wheth­
2.4 2.4 million and Haryana 350,000. By By May only,
about1.0 1.0 millionof of this 2.75 million had been
procured.
Farmer held stocks, however, reflect aa
greater investmentinin storage andinin the long
run their market salesat ataa later date will also
tend to to regulate the market downward. The
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Food Zones, Storage and Transport
Continuing the trend begun last year, the
government removed all all restrictionsonon grain
movement.
This action has stretched transport
facilities still furtherasas grain movestoto areas
of of higher prices. It It requires about 43,000 rail
carstoto moveaa million tonsof of grain. By By mid­
May about 900 cars (20,000 tons) were being
despatched each day from Punjab and Haryana.
By By late May the number passed 1,000. In In
the period May11- - May27, 27, 545,000 tons were
shippedby byrail rail from these two states; in in 1968
and 1969 the figures were 397,000 and 504,000
respectively.
These figures indicate the magnitudeof
of rail
movement, however, no no figures
are available for for trucks which form aa major
adjunct.
In In building grain' reserves, storage capacity
assumesa a central role. In In 1961 the Cooperative
Development Corporation had 800,000 tonsof
of
storage capacity; by by 1969, 2,600,000. In In 1970
the Food Corporation had 2,776,000 tons of. of.
capacity under direct control, 2,786,000 on on
rental and nearly 500,000 under construction.
Muchof of this warehousingisis strategically built
at at the market sites.
Thisisisaa remarkable in­
increase
but the trend
must continue to to meet
demands. Farmer storage is is increasing, but
its its qualityisis not generallyof ofaa high level.
Fertilizers
Without the widespread use of of chemical
fertilizer there wouldbe beno no Green Revolution.
The use of of fertilizers continued the upward
trendof of previous seasons, particularlyitsits use
on on wheat.
Total nutrient useinin 1969-70 varies
somewhat according to to different estimates.
One places thefigure re at at 1,696,000 tons with
952,000 metric tonsof ofitit produced ly. ly. The ratioof of Ntoto P 2 0 2 0 5 5 is is about 2:1. Fertilizer
imports are valued at at 117.94 crores of of
rupees (158 million $US).
About6464 percentof
of
domestical­
all all fertilizerisis marketed through the Cooperative
Development Corporation and the remainder
sold through private agencies.