minimum support price | SabrangIndia News Related to Human Rights Mon, 12 Feb 2024 09:25:05 +0000 en-US hourly 1 https://wordpress.org/?v=6.2.2 https://sabrangindia.in/wp-content/uploads/2023/06/Favicon_0.png minimum support price | SabrangIndia 32 32 Farmers’ Protest: Physical repression, prohibitory orders, Delhi entry blocked – Déjà Vu? https://sabrangindia.in/farmers-protest-physical-repression-prohibitory-orders-delhi-entry-blocked-deja-vu/ Mon, 12 Feb 2024 09:25:05 +0000 https://sabrangindia.in/?p=33087 Repressive tactics employed by state and union government await farmers as they gear up for protest in Delhi on Feb 13 to demand law on MSP, pensions for farmers and farm labourers, farm debt waiver, withdrawal of police cases and “justice” for victims of the Lakhimpur Kheri

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The proposed farmers’ protest, namely ‘Chalo Delhi’, to be held on February 13 has shaken the union and the state governments once again, resulting in the governments employing repressive tactics against the protesting farmers in attempts to stop them from entering Delhi. From sealing of borders, cement barricades, converting stadiums into make-shift prisons to imposing prohibitory orders, deploying para-military and imposing internet shutdowns, the state and union governments are leaving no stone unturned from ensuring that the protests do not take place.

This is reminiscent of the farmers’ protest of the year 2020, while the country was grappling with corona virus, farmers of India were protesting against the controversial farm laws that had been introduced by the Modi government, demanded for its repeal. Their protest of one year, which also saw the union and the state government employing repressive and violent tactics and resulting in the loss of many protestors, , had reaped results with the union government taking back the three laws in November of 2021. The farmers, who had welcomed the decision with opens arms on the birth anniversary of Guru Nanak, had even then said that their fight is far from over as their union government is yet to address their demands.

It is essential to highlight here that on the evening of February 8, a three-membered team of Union ministers, namely Piyush Goyal, Arjun Munda and Nityanand Rai, had held a detailed discussion with the leaders of farmer organisations. As per the Week, the said meeting had also saw the attendance of Punjab Chief Minister Bhagwant Mann. As stated by Jagjit Singh Dallewal, representing the farmers union, “We had a meeting with the Government today. The meeting was held in a positive atmosphere, Punjab Govt took the initiative. We presented all our demands in detail, with facts…The government listened to us & said that they will examine all our facts seriously.”

It was also provided by the leader that while the union ministers have assured them that they would hold a second round of the meeting soon, their proposed ‘Delhi Chalo’ march on February 13 still stands.

Our programme for 13th February will continue as it is”, Dallewal had asserted.

The second meeting with the same three union ministers is to be held today, on February 12, at 5 pm in Chandigarh as provided by Punjab Kisan Mazdoor Sangharsh Committee general secretary Sarvan Singh Pandher.

The march, the demands

The Samyukta Kisan Morcha- Non-Political and the Kisan Mazdoor Morcha had recently announced ‘Delhi Chalo’ march by more than 200 farmers’ unions, mostly from Uttar Pradesh, Haryana, and Punjab, on February 13 to demand from the union government to accept their long-standing demand of enactment of a law to guarantee a minimum support price (MSP) for their produce. A gathering of lakhs of participants in the protest is being anticipated. It is crucial to point out that that a law on MSP by the union government was one of the conditions that the farmers had set when they agreed to withdraw their agitation in 2021. Even after more than two years, the Bharatiya Janata Party-led Union government is yet to deliver their promises.

To provide a brief of the importance of MSP, a minimum support price is the rate at which the government buys farm produce and is based on a calculation of at least one and a half times the cost of production incurred by farmers.

Besides a legal guarantee for minimum support price (MSP), the farmers are also demanding implementation of the Swaminathan Commission’s recommendations which provided for safeguarding the interest of small farmers and addressing the issue of increasing risk overtaking agriculture as a profession. In addition to this, pensions for farmers and farm labourers, farm debt waiver, withdrawal of police cases and “justice” for victims of the Lakhimpur Kheri violence also form a part of the demands made. As provided by Mandeep Punia, a local journalist from Punjab and Haryana, they farmers have also raised a demand for 200 days’ daily wage and Rs 700 per daily wage for MNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) workers.

 The preparation by governments to impede, supress protest

Haryana: To join the march in Delhi, farmers have planned to come from the Ambala-Shambhu border, Khanauri-Jind and the Dabwali border. As per multiple media reports, ahead of farmers proposed ‘Delhi Chalo’ march, 50 companies of central paramilitary forces have been deployed by the Haryana Police with the aim of “maintaining law and order” in the state. As per a report on India Today, the authorities asserted the reason behind using paramilitary force is to ensure that nobody will be allowed to disturb peace and harmony. Notably, these central paramilitary forces comprise of Rapid Action Force and Central Reserve Police Force.

As per the statement given by a senior Haryana Police officer to the PTI, request for deploying 65 companies as paramilitary force had been made but only 50 were given. The officer stated that “Where these forces need to be deployed, we have done that.”

The India Today report also provides that the police have asked the farmers to not participate in the march without attaining the required permission and have also warned of strict action if they damage public property. Threats of compensation of any loss to government property caused to be compensated by attaching the property and seizing bank accounts of the protesters have also been issued by the police officials. Furthermore, they have also cautioned the farmers from giving their vehicles on rent or to any farmer, threatening to impound such vehicles and cancel its registration.

A video of police officials going around villages in the state and making such threats also surfaced on social media. In the video, posted by a local reporter named Mandeep Punia, police can be heard using a loud speaker and stating that any villager is found to be participating in the protest will have strict action taken against them, have their vehicles seized and their passports cancelled.

The video can be viewed here:

It is critical to emphasise here that to stop the farmers from protesting, as provided by the India Today report, the police have stocked up concrete blocks, barbed wire, sandbags, barricades and other items at the Shambhu border in Ambala to stop the protesters from marching towards the national capital. As per officials, directions have been issued by police official to petrol pump dealers in Ambala for not giving fuel to those who are sporting farmer’s union flags on their vehicles. Additionally, the police officials have stated that water cannon vehicles and drone have also been deployed at the Shambhu border. The Ambala district magistrate has imposed Section 144 of the Criminal Procedure Code (CrPC) in the district. These repressive tactics by the state come as the farmer unions in Ambala make preparations for the ‘Delhi Chalo’ march.

As per a report in the Livemint, the BJP-led state government of Haryana has also made other elaborate arrangements besides security, and have sealed the state’s border joining Punjab with barbed wires and concrete blocks to hamper the proposed ‘Dilli Chalo’ march by the agitated farmers. According to the statement of a senior police official in Jind district, from the India Today report, arrangements to seal entry point from Punjab include barbed wires, containers, barricades and concrete blocks, etc. In furtherance to this, the Haryana government has also suspended internet services in seven districts of the State from February 11 till February 13 and has ordered for bulk SMS services to be suspended. As per India Today, till the writing of this report, services have been suspended in districts including Ambala, Kurukshetra, Kaithal, Jind, Hisar, Fatehabad and Sirsa.

Visual from Shambhu border can be viewed here:

As per the report of Times of India, the Haryana police had laid a five layered barricading at the Nation Highway with concrete blocks, jersey barriers, spikes, barbed wires and iron barricades. The same can be viewed through the video:

Notably, as per the TOI report, a mock drill had also been conducted by the Haryana police at Shambhu Border wherein the police had fired tear gas shells at some youth who had gathered on Punjab side.

Delhi: On February 11, an order imposing Section 144 of the CrPC was issued by the Delhi Police through which large gatherings were prohibiting at all borders between the national capital and Uttar Pradesh, as per Hindustan Times. The same prohibitory orders have also been imposed in areas under the jurisdiction of the North-East Delhi district. Under the said order, vehicles carrying protestors from entering Delhi have also been banned. It is essential to note that the orders imposed in Delhi will be active from February 11, Sunday, and will remain in place till March 11, 2024.

Information has been received that some farmer organisations have given a call to their supporters to gather/march to Delhi on 13th February for their demands of the law on MSP and others. They are likely to sit at the border of Delhi till their demands are met. In order to avoid any untoward incident and to maintain Law & Order, a precautionary Order of section 144 Criminal Procedure Code, 1973, is required to be issued to save the lives and property in the area“, Delhi Police told ANI.

The social media post can be viewed here:

Make-shift jails for those detained:

As per a report of the NDTV, the Haryana government has converted two large stadiums, namely the Chaudhary Dalbir Singh Indoor Stadium in Sirsa, and Guru Gobind Singh Stadium in Dabwali, into makeshift jails ahead of the planned march with the objective of them serving as temporary jails to keep detained farmers. As provided in the said report, sources have stated that in case of any untoward situation during the march, farmers who are detained or arrested in large numbers will be kept in the temporary jails.

Media not allowed to cover protest:

As per the report of TOI, even media coverage has not been allowed by the Ambala police, as media persons from the Haryana side were prohibited from reaching the Shambhu border to see the situation and cover the matter. The media persons were stopped at Devi Nagar toll plaza. Furthermore, some media-persons who tried to do coverage from the Patiala, Punjab side, were also stooped and asked to leave the spot by the Haryana police officials.

Refusing to bow down, farmers gear up for protests

Videos of farmers proceeding towards Delhi, in the face of the coercive state employed tactics, have been surfacing on social media. In one such video, police can be seen standing beside the barricades that have been put on the road to restrain farmers from joining the march. As the barricades stand, a tractor going around those barricades with the police unable to stop the protestors from exercising their fundamental right to protest can be seen. Many more protestors can then be seen coming after the tractor, removing the barricades itself and carrying on with their journey to join the march in Delhi.

The video can be viewed here:

Opposition, leaders raise questions on laying of spikes, cement barricades

Aam Aadmi Party leader and Chief Minister of Punjab Bhagwant Mann has urged the Centre to listen to farmers’ demands instead of setting up “borders between India and Punjab”. Expressing his anguish, Mann said “They [Haryana government] are installing fencing on the Punjab border. I request the central government to engage in talks with farmers. Please avoid creating an India-Punjab ‘border’.”

The Samyukta Kisan Morcha (SKM) also slammed the state government’s attempts of blocking of roads. “Why is the government scared? Huge barricading is being done. Is this democracy?” SKM leader Jagjit Singh Dallewal rather stated in a message that “If the situation turns bad, it will be the responsibility of the Khattar government.”

Indian National Congress leader Priyanka Gandhi took to ‘X’ (formerly Twitter) and wrote that putting such hurdles in the path of farmers is state government’s injustice to their cause. In her post, she said “laying spikes and thorns in the path of farmers is it Amrit Kaal or injustice time? Due to this insensitive and anti-farmer attitude, 750 farmers lost their lives. What kind of characteristic is it of the government to work against the farmers and then not even allowing them to raise their voice? Priyanka said that the central government neither made the MSP law for the farmers nor doubled the income of the farmers. In such a situation, if the farmers do not come to the government, where will they go? He asked the Prime Minister, why is the country’s farmers being treated like this? The promise made to the farmers was not fulfilled.”

The post can be viewed here:

 

Related:

Govandi slum demolition: Temporary halt after protests outside BMC office by residents, those rendered homeless to rebuild their homes at the same site

Delhi, Punjab CMs, INDIA leaders join Kerala’s protest against Centre’s policies, TN MPs wear black robes too

Farmers in Noida, Greater Noida are protesting, which are the farmer unions are leading them

Freezing temperatures do not stop thousands in Leh from protesting to demand statehood, constitutional protections

 

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SKM demands Centre come through on its promises https://sabrangindia.in/skm-demands-centre-come-through-its-promises/ Sat, 15 Jan 2022 12:59:29 +0000 http://localhost/sabrangv4/2022/01/15/skm-demands-centre-come-through-its-promises/ With hardly any FIRs withdrawn in Haryana, the SKM returns with pertinent questions about the delay in Centre’s own assurances; calls for protests on January 31

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Samyukta Kisan Morcha

Farmers’ umbrella body Samyukta Kisan Morcha (SKM) has called for a nationwide protest on January 31, 2022 after expressing disappointment at the central government’s failure to come through on its own promises to protesters.

Around December 8, 2021, the Centre first initiated talks with farmer leaders negotiating many demands such as a legal guarantee to Minimum Support Price (MSP), withdrawal of the draft Electricity (Amendment) Bill 2021, penal provisions on farmers in the Commission for Air Quality Management in the National Capital Region and Adjoining Areas Act 2021 and FIRs registered against agitating farmers across India.

However, “Barring some FIRs in Haryana, there has been no progress regarding the assurances made in the documents,” said SKM member Ashok Dhawale during a press conference.

For this reason, the members declared tehsil-level protest all over the country on Monday. Further, if their demands remained ignored after the protests, farmers decided to launch “Mission Uttar Pradesh” and “Mission Uttarakhand” in the respective states to condemn the ruling regime.

Regarding politics, the SKM also clarified that it has distanced itself from all unions wishing to enter politics as the movement “is apolitical”. Leaders said they will decide whether the estrangement will continue four months from now.

Meanwhile, it voiced fresh support to the anganwadi workers in Haryana, who have been asserting their rights since December 8. The SKM also promised to participate in the All-India General Strike of trade union on February 23 and February 24 to condemn other oppressive laws of the government.

Samyukta Kisan Morcha

Since October 2021, farmers have also demanded the sacking of Union Minister Ajay Mishra for his alleged involvement in the Lakhimpur Kheri massacre. Leaders pointed out that even the SIT probe stated that the incident was a premeditated act and not a chance event. However, while Mishra remains in office many farmers have been arrested since then.

To look into this matter, farmer leader Rakesh Tikait along with a delegation of the SKM will go to Lakhimpur Kheri on January 21 for three days to talk to the arrested farmers and their families.

“We will meet the people in jails and their families. Many of our people have been imprisoned and we plan to talk to authorities about this. Even authorities who arrested farmers outside Uttar Pradesh will be questioned for the act,” said Tikait.

The SKM said that if the delegation finds their investigations unsatisfactory, they will announce fresh protests across the district.

Farmers demands

Aside from the withdrawal of the three contentious laws, the SKM has constantly demanded a legal guarantee to MSP. During their last talk with officials, farmers were told that the Centre will create a committee to discuss MSP legalisation. However, after nearly a month, farmers noted that the government has taken no efforts to follow through on their promises.

Similarly, many peasant families have been waiting for their compensation from the government after family members died while participating in the national struggle. Yet, many have not received any word from officials.

During the press conference, the farmer leaders called this protection of Minister Mishra and the stalling of the committee another way to protect their “vote bank”.

Related:

Lakhimpur Kheri massacre: Fact-finding report highlights administrative tyranny
Lakhimpur Kheri killings were planned: SIT
SKM says govt’s draft agreeable, but “this is not the end”
Willing to end struggle but no faith in GoI: SKM
SKM forms five-member committee to hold talks with GoI

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Bihar farmers lose out on 2020’s maize crop boom https://sabrangindia.in/bihar-farmers-lose-out-2020s-maize-crop-boom/ Tue, 10 Nov 2020 07:32:01 +0000 http://localhost/sabrangv4/2020/11/10/bihar-farmers-lose-out-2020s-maize-crop-boom/ Despite hunger strikes and appeals to the local officials, Bihar farmers received no compensation for the lockdown-induced poor performance of the maize crop

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Image Courtesy:newsclick.in

Although Bihar’s maize crop enjoyed a boom this year, farmers did not receive decent rates, said member of the All India Kisan Sangharsh Coordination Committee (AIKSCC) Ashish Ranjan on November 9, 2020. Local farmers claim that labour migration, among other issues caused by the lockdown, adversely affected current and future farming prospects.

“Ideally maize costs around Rs. 1,600 to Rs. 1,700 per quintal. The MSP [Minimum Support Price] is Rs. 1,850 per quintal as declared by the Union Cabinet Committee on Economic Affairs for marketing season 2020-21. However, farmers have only received Rs. 1,000 per quintal or Rs. 1,100 this year,” said Ranjan.

Bihar’s farmers spent the better part of kharif season demanding proper prices for their maize produce while political parties geared up for state elections. It may be mentioned that while many farmers from Madhepura, Araria and other districts observed a hunger strike in June, no political party included low maize prices or Minimum Support Prices (MSP) as a part of their manifestos.

According to Araria’s maize farmer Amar, traders are the only ones who have benefitted from this year’s crop yield.

“Last year, I sold 200 quintals of maize – less than this season’s sale. But I earned more in 2019 due to better price rates. I received Rs. 1,700 per quintal which went up to Rs. 2,000 per quintal by the end of the season,” said Amar.

This year, he sold 300 quintals for Rs. 1,000 per unit. Estimating an expenditure of Rs. 25,000 to Rs. 30,000 per acre on his 10-acre land, Amar has resolved to apply for another loan for the next season’s harvest.

Amar was one of the participants of the June hunger strike, demanding government assistance in the sale of maize crops. At the time, local authorities had promised to conduct a survey before answering their demands. However, Amar said that no one from the government ever came to his field to survey the state of his crops.

Bereft of any other means, farmers like him were forced to sell their produce to small traders who took the crop to big markets in Purnia and other districts and sold the produce at Rs. 1,200 per quintal.

Amar reasoned that the situation would have been better if farmers had proper go-downs or storage spaces to preserve their crops.

“If we had go-downs, we could wait for better prices to sell our produce. The monsoon rains also speed up our need to sell our crop before they are ruined,” he said.

While Araria’s private storehouses enjoy a capacity of around 50,000 tonnes, local farmers like Amar can only afford the Panchayat-level storehouses that have very little capacity. He argued that farmers would profit greatly if the state government created three or four go-downs at the Panchayat-level to help local farmers.

Ranjan reinforced this idea by saying that marginal farmers would also benefit from maize crops if the government provided facilities to deal with crop storage, irrigation, and regularisation of markets.

Most farmers in Bihar are market-dependent, which is ironic considering the state government abolished the APMC system in 2006. According to a 2019 study by the National Council for Applied Economic Research the abolition of APMC had resulted in increased volatility in crop prices which negatively affected farmers’ crop choices and decisions to adopt improved cultivation practices. The study showed that farmers have been left to the mercy of traders who unscrupulously fix lower prices for agricultural produce bought from farmers.

In the present, Amar fears that the labour migration caused by the lockdown would affect the harvest of the next season as well. The absence of labourers meant farmers would not be able to finish field-work on time. Moreover, he said the government had offered no benefits this year.

When asked about possible reliefs for farmers, Amar said that price subsidies for seeds, transport services and storage facilities could improve farmers’ situation immensely.

“Currently, maize seeds cost Rs. 300 per packet that yields 4kg of crop. If this seed-price is lowered, then I might be able to breakeven,” he said.

Maize became a popular crop over the last decade as its hybrid seeds gained popularity among farmers. By 2017, Bihar had become the third-largest producer of maize in India. Yet, farmers continue to suffer from little market access. Having done his bit for the state elections, Amar said, “I hope that a new government would look into our issues.”

Related:

Farmers answer second clarion call to protest anti-farmer laws
AIKSCC decries new Ordinance’s anti-farmer stand
New Central laws preventing us from checking prices of onion, pulses: Jharkhand Finance Minister
Kerala: New base prices for 16 agricultural produce won’t benefit rubber farmers

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New MSP for Kharif crops: Historic or Histrionics? https://sabrangindia.in/new-msp-kharif-crops-historic-or-histrionics/ Tue, 10 Jul 2018 06:40:50 +0000 http://localhost/sabrangv4/2018/07/10/new-msp-kharif-crops-historic-or-histrionics/ Govt. can’t stop patting its own back for benefits it never provided On July 4, 2018, the cabinet approved a hike in the Minimum Support Price (MSP) for Kharif crops, triggering an unabashed display of self congratulations and sycophancy on social media. But given how the MSP hike without any guarantee of procurement is a meaningless […]

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Govt. can’t stop patting its own back for benefits it never provided

Farmers

On July 4, 2018, the cabinet approved a hike in the Minimum Support Price (MSP) for Kharif crops, triggering an unabashed display of self congratulations and sycophancy on social media. But given how the MSP hike without any guarantee of procurement is a meaningless publicity stunt, one wonders if the move is just a means to build a farmer friendly image for the ruling disposition in the run up to the elections next year.

Finance Minister Arun Jaitley who had presented his fourth budget earlier this year, had then said that he is fulfilling a promise made by the BJP in the election manifesto for the 2014 Lok Sabha elections- that of a Minimum Support Price (MSP). He said, “Government has decided to keep MSP for all the unannounced crops of Kharif at least at one and half times of their production cost.” He also remarked that this decision will prove to be a ‘historic’ step towards doubling the income of farmers.
The cabinet has now approved the median increase in the Minimum Support Price (MSP) as ’25 percent’, compared with 3-4 percent in the first four years since the government came into power.

Citizens for Justice and Peace (CJP) has long supported farmers’ rights and the struggle of India’s agrarian communities. To support CJP’s work in the field of agrarian rights, please Donate Now.

Many, including minister of agriculture and farmers’ welfare, Radha Mohan Singh and home minister Rajnath Singh hailed this decision as “historic”. In fact, even the Prime Minister congratulated himself as well by calling it ‘historic’. Interestingly this move is rather hollow as the government never actually provided the benefits it claims to have promised.

BJP followers on Twitter went gaga over this and trended hashtags such as #FarmersWithModi, #Modifor2019 etc. Here are a few images that were tweeted with much enthusiasm.


Here is a quick fact-checker to understand this move of the government and its impact on farmers.
 

Swaminathan report and its relationship to MSP

The National Commission for Farmers (NCF) was constituted in 2004 in the background of suicides being committed by thousands of farmers across the country, and the larger agrarian distress that was plaguing the rural India. Five reports were submitted to the then government between December 2004 and October 2006.

The recommendation regarding MSP appeared in the fifth report which was titled, ‘Serving Farmers and Saving Farming: Towards Faster and More Inclusive Growth of Farmers’ Welfare’
 

MSP as defined by the Swaminathan report

“The Minimum Support Price (MSP) should be at least 50% more than the weighted average cost of production. The “net take-home income” of farmers should be comparable to those of civil servants.”
 

Government’s method for fixing MSP before every planting season

The Commission for Agricultural Costs & Prices (CACP) in the Ministry of Agriculture recommends MSPs for 23 crops. These include 14 grown during the Kharif/post-monsoon season and six in Rabi/winter (wheat, barley, chana, masur, mustard and safflower), apart from sugarcane, jute and copra. The CACP is supposed to consider various factors while recommending the MSP for a commodity, including cost of cultivation. The CACP has three different definitions of productions costs – A2 (actual paid out cost), A2+FL (actual paid out cost plus imputed value of family labour) and C2 (comprehensive cost including imputed rent and interest on owned land and capital). As is evident, C2 > A2+FL > A2.
 

What was promised?

The BJP had promised to fix the Minimum Support Price (MSP) at 50% above the cost of production in its 2014 manifesto which should ideally have been C2.
 

What we got?

However, the increase in MSP that has been announced is not over cost C2, as promised, but on A2+FL. A2+FL is considerably lower than cost C2. A2+FL doesn’t include the rental value of own land.
 

What is the duration of increase?

The suggested increase at the moment is only for the Kharif marketing season for 2018-19.
No policy decision has been made to fix the MSP at 50% over cost of production
There is no assurance that this method will be followed in the Rabi marketing season and also for the years to come
 

What is the hike in MSP of Paddy, Arhar, Urad and Ragi?

The increase of Rs 200 per quintal in the MSP of paddy is a hike of 13% over the previous year. The MSP for Arhar and Urad has been increased by about 4%, while the highest hike has been done for Bajra, Jowar and Ragi (over 30%)
 

Is this ‘hike’ really a hike?

Actually, the MSP hike for paddy this year is lower than the year-on-year hike during the three years between 2007-08 and 2009-10, and in 2012-13.

  • Paddy-

State projection of Cost of Production for 2017-18 by Andhra Pradesh- Rs. 1866/Qtl, CACP projection- Rs. 1495. AP had proposed Rs. 2799/Qtl.

States of Maharashtra, Chhattisgarh and Madhya Pradesh had proposed MSP of Rs.3251/Qtl, Rs.2,200/Qtl and Rs.2,700/Qtl respectively for paddy in 2017-18.

Other major paddy growing States like Tamilnadu and Punjab had recommended MSP of Rs.2300/Qtl and Rs.2000/Qtl for 2017-18.
 

Kerala is already procuring at Rs.2350/Qtl

Due to the absence of public procurement farmers in most States are forced to sell at distress prices ranging from Rs.800/Qtl to Rs.1200/Qtl even when MSP was Rs.1550/Qtl.
 

In the case of other crops as well the hike in MSP was higher in previous years!

Cotton-Hike in MSP for Cotton was 48% in 2008-09, this year it is only 26% this year

Sunflower seed-Hike in MSP for Sunflower seeds was 47% in 2008-09, this year it is only 31%
 

  • Groundnut-

BJP ruled Gujarat had proposed Rs.6500/Qtl for groundnut last year while the MSP announced by the centre was a mere Rs.4890/Qtl.
 

  • Pulses-

Farmers were expecting a huge hike in pulses as an incentive for producing more to meet the country’s needs and also for naturally fixing nitrogen to the tune of about Rs.4000/hectare.

For Arhar/Tur, the cost of production determined by Telangana and Andhra Pradesh were Rs.5984/Qtl and Rs.7123/Qtl, while the CACP projections were way below at Rs.5683/Qtl only, for both the states. Farmers are forced to sell at rates ranging between Rs.3400/Qtl to Rs.4,200/Qtl only which is below the then MSP of Rs.5450/Qtl

Karnataka which is a major producer of Arhar/Tur had suggested an MSP of Rs.7000/Qtl while the MSP announced is only Rs.5675/Qtl which is way below the cost of production in the major Arhar/Tur growing States. Karnataka and Madhya Pradesh had suggested Rs.4800/Qtl and Rs.4000/Qtl for soyabean while the MSP announced is only Rs.3399/Qtl.

For cotton the Andhra Pradesh and Telangana Governments cost projection for 2017-18 was Rs.5042/Qtl and Rs.5337/Qtl while CACP projection was only Rs.4625/Qtl. They had proposed MSP of Rs.7564/Qtl and Rs.8005/Qtl respectively and BJP ruled Maharashtra had proposed Rs.7204/Qtl while the MSP announced is only Rs.5150/Qtl.
 

Differences in C2 and A2+FL costs

 

Crop A2+FL 
Per Quintal
C2 
Per Quintal
MSP (2018-19)
Per Quintal
C2+50% Difference Between C2+50 & MSP
Per Quintal
CACP Costs for 2018-19
Paddy 1166 1560 1750 2340 -590
Jowar Hybrid 1619 2183 2430 3274.5 -844.5
Bajra 990 1324 1950 1986 -33
Ragi 1931 2370 2897 3555 -658
Maize 1131 1480 1700 2220 -520
Arhar 3432 4981 5675 7471.5 -1796.5
Moong 4650 6161 6975 9241.5 -2266.5
Urad 3438 4989 5600 7483.5 -1883.5
Groundnut 3260 4186 4890 6279 -1389
Sunflower Seed 3592 4501 5388 6751.5 -1363.5
Soyabean 2266 2972 3399 4458 -1059
Sesamum 4166 6053 6249 9079.5 -2830.5
Nigerseed 3918 5135 5877 7702.5 -1825.5
Cotton
(Medium Staple)
3433 4514 5150 6771 -1621

Table: SabrangIndia
 

How many farmers have access to MSP?

As many as 93% farmers in the country don’t have access to MSP. They are left to deal with market fluctuations on their own. There is no provision in the budget to increase the ambit of farmers covered by MSP.
 

Is it enough to increase the MSP?

  • It is a myth that hike in MSP is the only step forward. Procurement levels vary signicantly across crops and regions.
  • Much of the Paddy procurement is concentrated in the states of Punjab, Haryana, Andhra Pradesh and Chhattisgarh.
  • Procurement as a percentage of production remains low in states like West Bengal, Assam, Uttar Pradesh and Bihar.
  • In the absence of proper procurement, the prices of crops even falls below MSP.
  • For instance, the price of Rice has fallen below MSP in states such as West Bengal, Assam, Uttar Pradesh and Bihar.

Can anything be done at the legislative front?

The Commission for Agriculture Costs and Prices (CACP), the body which fixes MSPs for 23 Kharif and Rabi crops has asked the Modi government to bring in a ‘right to sell at MSP’. This, the body believes, is to give some actual legal teeth to the exercise.

What about procurement?

The awareness about MSP and the procurement agency is much lower among marginal and small farmers (cultivating less than two hectares of land), as per the NSS Situation Assessment Survey of Agricultural Households (2012-13). The small and marginal farmers constitute 85% of the cultivator population. A rise in MSP is unlikely to benefit a large number of cultivators.

Fluctuations in prices of other crops

MSP is only announced for 25 crops, while for other crops they have to deal with market volatility. There is no MSP for fruits and vegetables. Industrialists don’t have to face massive fluctuations.

Aspirational targets, but what is the reality?

Prices of most cash crops are more influenced by their demand-supply equations and by international prices. Though the government may set an aspirational target but its exact influence on prices on the ground remains limited. This is due to the constraints in reach and infrastructure facilities.

The average agricultural growth during the first four years of the current government was only 2.4%. In this entire period the real wage of agricultural labourers grew annually only by 0.67%. The government hardly did anything in drought affected regions. Owing to massive dissatisfaction among farmers across the country on various issues, movements took place including the Long march in Maharashtra in March. The government then promised that it will accept the key demand of ensuring MSP. However what the government has actually introduced looks far from promising.
 
Feature Image: Representational Image

First Published on https://cjp.org.in
 

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