Is the Modi government deceiving farmers on MSP, Yes say Farmers Organisations, MSP of Kharif crops far below C2+50%

Demanding that the union governments ensures a ‘legal guarantee’ of MSP at C2 + 5-%, the All Indian Kisan Sabha (AIKS) has accused the government of ‘resorting to lies’ by claiming that the Minimum Support Prices (MSP) of Kharif crops is 50 per cent more than the cost of production. This refers to an announcement by the newly sworn in Information and Broadcasting Minister, Ashwini Vaishnav announcing that the MSP approved for Kharif crops was 1.5 times more than the cost of production. An undiscerning commercial media, states the AIKS, propagated the claim without critical analysis. Clearly, the claims are far from the truth, rather a blatant lie as the promise made in 2014 was to implement the Swaminathan Commission recommendation of C2+50%.  The goal posts have been conveniently shifted to A2+FL+50% formula which is way below C2+50%.

Even going by the conservative cost estimates of the Commission on Agricultural Costs and Prices (CACP) the C2+50% is far above the MSP in all the 14 Kharif crops as shown in the table below, says a press release issued by the AIKS.

The discrepancy in cost calculation is further brought out when one takes the weighted average of State C2 Projections. In Paddy despite the fact that Andaman and Nicobar Islands and Jammu and Kashmir (both under Union Government) show absurdly low C2 costs of Rs.1000/Qtl and Rs.1017/Qtl, the weighted average C2 costs would come to Rs.2,188/Qtl and C2+50% will be Rs.3,282/Qtl or Rs.3,555/Qtl if the two are excluded. In that case in Paddy the losses suffered by farmers will be even higher at Rs.1,255/Qtl. Taking the example of Cotton as per the State C2 projections the C2+50% will be Rs.11,163/Qtl or a loss of Rs.4,042/Qtl. In Maize, the C2+50% as per State projection will be Rs.3378/Qtl, implying that at current MSP losses incurred will be Rs.1,153/Qtl.  This is the situation for all crops as the calculations of the Union Government agency, the CACP is way below the projection of the States. Clearly, the BJP led Government has not taken into account the increasing costs of production like high fertilizer prices, irrigation costs etc. They have also not bothered to give even scant respect to the States and their projections.

Accusing the minister, Ashwini Vaishnaw who is also the Union Minister of Railways of making callous claims, the AIKS has demanded that the Narendra Modi led Government put on hold this announcement and only after talks with the Samyukta Kisan Morcha come with a revised MSP in accordance with the promise of C2+50%. The AIKS has also called upon all its units to expose the dual speak of the BJP Government and the Prime Minister and rise in protest against the anti-farmer Government. The statement has been issued by President, AIKS, Ashok Dhawale and General Secretary, Vijoo Krishnan.

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