DNA Exclusive: Politics of ‘maximum’ on ‘minimum’ support price, here is the latest twist in the demands of farmers

New Delhi: Despite Prime Minister Narendra Modi’s announcement to withdraw three agriculture laws, farmer leaders are unwilling to end their agitation. The United Kisan Morcha has written a letter to Modi and has put forth six demands including the law for MSP i.e. Minimum Support Price.

Sudhir Chaudhary, editor-in-chief of Zee News, discussed the politics being played on Monday (November 22) regarding the demand for MSP.

Till three days ago, the farmers who were opposing the agricultural laws are now demanding from the central government to enact a law for MSP.

MSP means minimum support price. This is the minimum price at which the government buys their crops from farmers. This means that even if the prices of crops fall more, the farmers will get their due share. Presently, the government gives MSP on 23 crops, of which wheat and paddy are the major crops.

The protesting farmers have demanded that MSP be given constitutional status in the country. That is, a law should be made to ensure the purchase of crops at MSP, failing which punishment will be given.

It is worth noting that the MSP system in the country is in place for the last 55 years. The question is that the system which could not reduce the loss of farmers in 55 years, how will it solve their problems even after being given legal status?

In 2015, a committee of the Government of India stated that only 6 percent of farmers in the country get the benefit of MSP. That is, 94 percent of the farmers never get the benefit of it. This happens for two reasons. Firstly, there are no government mandis in all the districts of the country where farmers can sell their crops. Secondly, the government does not have sufficient capacity to hold the stock.

How can a system which is not in the interest of 94 percent of farmers, be a means to rescue the farmers of the country from the everlasting crisis? Of the six percent farmers who got the benefit of MSP, 85 percent belong to Punjab and Haryana. These are the farmers who are protesting for the demand of MSP guarantee.

If the central government gives legal status to MSP, it will be forced to buy 23 crops under the system. The annual expenditure on this would be around Rs 17 lakh crore. This is half of the annual budget of the entire country.

According to a study, even after spending so much, only 60 percent of the farmers of the country will be able to sell their crops at MSP. If the central government buys the crops of these 60 percent farmers at MSP even for only two years, then the country can reach the verge of bankruptcy.

Instead of MSP, if the government gives income support to the farmers, it can be very effective. If the government starts giving 10 thousand rupees annually to all small and big farmers, then it can make a positive difference. Such a move would cost the exchequer only Rs 1.4 lakh crore. MSP is not a solution to farmers’ problems and reforms in this area are long overdue.

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