The AIKS has “condemned the Narendra Modi led BJP Government’s farcical announcement of the Minimum Support Prices (MSP) for Rabi Marketing Season 2024-25 claiming it is “at least 1.5 times the All India weighted average Cost of Production, will ensure remunerative prices to farmers and incentivise crop diversification”.
The claim made by the union government on Wednesday, October 18, after the Cabinet Committee on Economic Affairs (CCEA) that the “Rs.150/Qtl hike in MSP of wheat is ‘highest’ since 2014 is hollow when one considers the fact that the MSP announced does not take into account the increased costs of production for which the policies of the BJP government are responsible,” says a press release issued by the AIKS.
“It is a dishonest attempt to deceive the farmers and it needs to be called out; the Cost of Production mentioned is not the comprehensive cost C2 but A2+FL which is much lower. The BJP Government is peddling lies to mislead farmers especially in the election-going States of Rajasthan, Madhya Pradesh, Chhattisgarh and Telangana.
“The losses suffered by the farmers in each crop per quintal are shown in the table above. The stark nature of difference in A2+FL and C2 costs as well as State proposals and CACP proposals can be illustrated with certain glaring examples. The Punjab Government projection of C2 cost for wheat is Rs.2051/Qtl while the A2+FL taken by the CACP is merely Rs.741/Qtl i.e., Rs.1310/Qtl lesser than C2 cost. The Punjab Government suggestion of MSP for wheat is Rs.3077/Qtl as per the C2+50% formula. The loss suffered by a farmer in Punjab is Rs.802/Qtland about Rs.38,496/Hectare taking into account the State’s average yield of about 48 quintals per hectare. About 35 lakh hectares of wheat is cultivated in Punjab. The loss suffered by farmers of Punjab every year in wheat alone is to the tune of about Rs.13,500 crores.
“It is notable that Maharashtra’s A2+FL cost for wheat is Rs.1934/Qtl and the C2 cost is Rs.3592/Qtl. The MSP announced is Rs.1317/Qtl lesser than even the costs incurred by the farmer. The BJP-Shiv Sena ruled State had proposed an MSP of Rs.4131/Qtl; at the MSP announced a farmer in the State incurs a loss of Rs.1856/Qtl or a loss of Rs.46,400/Hectare. Maharashtra farmers suffer losses of Rs.4640 crores in wheat every year. So much for the ‘Double Engine Sarkar’ and their promise of Doubling Farmers’ Incomes.
“In BJP ruled Madhya Pradesh the State projected C2 cost of Lentil/Masur is Rs.4615/Qtl while the A2+FL is only Rs.2288/Qtl that is Rs.2327/Qtl lesser. The State projected C2+50 for Masur comes to Rs.6922.5/Qtl implying that a farmer in Madhya Pradesh loses Rs.497.5/Qtl or Rs.4975/hectare. In the case of Gram/Chana Telangana State projected C2 cost is Rs.6055/Qtl while A2+FL is only Rs.2290/Qtl that is Rs.3765/Qtl lower. The State suggested an MSP of Rs.9351/Qtl which is Rs.3911/Qtl higher than the MSP announced. A farmer suffers a loss of Rs.58,665/Hectare.
“In Rajasthan the state projected C2 cost of Chana/Gram is Rs.4100/Qtl while A2+FL cost considered by the CACP is only Rs.2591/Qtl. Rajasthan State had proposed Rs.6149/Qtl as the MSP i.e. Rs.709/Qtl higher than the MSP announced. A Farmer in Rajasthan in Chana/Gram alone loses Rs.8500/Hectare given a productivity of 12Qtl/Hectare.
Finally, the press note states that, “the farmers of India have seen through the repeated betrayals by Narendra Modi and the BJP Government and their charade of Doubling Farmers’ Income. Even the unremunerated MSP announced is only notional. It is not accruable to majority of the farmers since there is no procurement. This is the reason why farmers remain steadfast in the demand for a legal guarantee for MSP and assured procurement. AIKS calls upon all its units to expose the Government, disseminate the information to all sections of society and rise in protest. The people of the States going to elections will give a fitting rebuff to the BJP and their propaganda using the corporate media and advertisements spending huge amount of money.”
Late on Wednesday evening, the announcement by the CCEA and union minister for Information & Broadcasting, Anurag Thakur on MSP had received widespread media coverage. The response of the AIKS and forthcoming protests are a response to this announcement.
The statement of the AIKS may be read here: