Farmer Protest: The ongoing farmer protests in India have once again brought the spotlight on the contentious issue of MSP. Despite efforts by the government to address farmers concerns through a proposed MSP agreement, the response from farmers has been a resounding rejection. In Chandigarh, a meeting between farmers and the government, represented by three ministers including Piyush Goyal, took place. However, initial feedback from farmer leaders indicates skepticism. They insist on assurances covering all 23 crops, not just select ones like dal or maize.
Highlights from Chandigarh Meeting
- Union cooperative societies like NCCF and NAFED will engage in a five-year contract to buy dal and maize.
- These crops will be purchased at MSPs under this arrangement.
- There will be no limits on purchase quantities, and a dedicated website will facilitate the process.
- Piyush Goyal highlighted that this initiative is part of a broader strategy to boost maize production for ethanol supply, benefiting Punjab’s farming sector, groundwater levels, and land conservation efforts.
- The government’s push for maize and dal cultivation as part of its crop diversification agenda is evident, with the MSP for maize set at ₹2,090 per quintal last year, up from ₹1,760 in 2019.
Concerns regarding groundwater depletion have been raised previously as well. In November of last year, the Supreme Court cautioned Punjab to implement measures, such as transitioning to maize cultivation. This directive was made within the context of a hearing on air quality pollution, primarily stemming from the burning of agricultural (paddy) residue in the Delhi region. Notably, a record-breaking 346.13 lakh tons of maize was cultivated in the 2022/23 season.
Current MSP Scheme Overview
Currently, the Minimum Support Price (MSP) is extended to 23 crops, which go beyond essential staples like paddy, wheat, pulses, and maize. This expanded list includes crops such as ragi, groundnut, soybean, sunflower seeds, barley, rapeseed, and mustard, as reported by PTI.
In June of 2023, prices for the kharif crop were announced, with MSPs increased to a level that is at least 1.5 times the All-India weighted average cost of production. This move aims to ensure that farmers receive remunerative prices for their produce and to promote crop diversification.
Farmers Demand for MSP
Apart from seeking legal support for Minimum Support Prices (MSPs), farmers are advocating for the implementation of recommendations from the Swaminathan Commission, as well as pensions for farmers and agricultural laborers. The Swaminathan Commission proposed setting the floor price at a minimum of 50 percent above the weighted average cost of production, commonly known as the C2+50 formula. This formula considers factors such as the cost of capital and land rent in determining MSPs. The Samyukt Kisan Morcha, the overarching body leading the current protests, has made it clear that they are unwilling to settle for anything less than this formula.
Understanding MSP
MSP serves as a form of government intervention in the market, established to shield farmers from drastic drops in crop prices, particularly during times of bumper harvests when prices plummet. Annually, the government procures a certain quantity of designated crops, the list and prices of which are announced prior to sowing. The objective is twofold: to ensure farmers receive a minimum return on their investment and to procure crops for the government’s public distribution system. MSP serves as the minimum price at which a crop can be purchased in the market.
Despite its significance, MSPs lack legal backing, meaning the government is not obligated to purchase a specified percentage of a farmer’s crop at the floor price. This is the aspect that farmers are advocating to change. The issue of MSP gained widespread attention four years ago following the enactment of the Modi government’s controversial agricultural laws, two of which were repealed following the extensive protests by farmers during the 2020/21 period.
Differences Between Current and Past Farmer Protest
Feature | 2020 Protest | 2023 Protest |
---|---|---|
Demands | Opposed three specific farm laws (repealed) | Legal backing for MSP, debt waiver, pension schemes, Swaminathan Commission recommendations |
Leadership | Unified front led by Rakesh Tikait and Gurnam Singh Charuni | Fragmented leadership with Samyukt Kisan Morcha (non-political) and Kisan Mazdoor Morcha at the forefront |
Location | Farmers entered Delhi | Government using stricter measures to prevent entry into Delhi |
Tactics | Traditional protests and marches | Innovative tactics like using kites against drones and modified tractors |
Farmers Protest 2023: Understanding the Demands and Current Situation
- Legal Guarantee for MSP: Farmers want a law ensuring they receive a minimum price for their crops, fearing deregulation would leave them vulnerable to market fluctuations.
- Debt Waiver: The burden of existing debt adds to their financial struggles.
- No Hike in Electricity Tariffs: Rising electricity costs further strain their resources.
- Withdrawal of Police Cases: Farmers want cases filed during previous protests dropped.
- Justice for Lakhimpur Kheri Victims: Inquiry and compensation for farmers killed in clashes with security forces.
- Reinstatement of Land Acquisition Act: Farmers seek protection from unfair land acquisition practices.
- Compensation for Families of Deceased Farmers: Support for families who lost loved ones during previous protests.
- Location: Farmers camped around 200 km from Delhi, facing multiple fortifications.
- Police Action: Initial tear-gasing incident, but the situation has been calm since.