MSP: Why it should be legalized?

Jag Mohan Thaken

For their demand of repealing the three black laws and legalizing   Minimum Support Price (MSP) for their crop produce, farmers of the entire country agitated at Delhi Border in a year- long protest during 2020-21 losing their hundreds of warriors, however they   temporarily forced to bow down the central government to nullify the black laws, but got no guarantee of legalized MSP.

 If we see the present mood of the government, it does not seem to have calmed down yet and still looking as it is apoplectic with rage.

Government’s this enraged behavior reflected when brutal sticks were hitting and wavering over the heads to legs of the farmers on June 6 and this   Lathi-charge over the protesting farmers on National Highway near Kurukshetra not only scattered the agitating farmers, but also their hopes that they will get MSP for their Sunflower produce and also this lath-charge clearly messaged that the government has decided not to carry on the MSP in its true sense in future also.  

However, just on the next day of lathi-charge, to cool down the irritating wounds of the farmers and publicize that the government is very much anxious about the farmers, central government announced the MSP for   Kharif Marketing Season (KMS) 2023-24, in which the MSP of Sunflower has been increased from present Rs. 6400 to Rs.6760 per quintal.

But, here arises the question– “When the government is not procuring the Sunflower seeds even on the previous MSP of Rs.6400/ and the farmers are forced to sell their produce at throw away prices, then what remains the meaning of enhancing the MSP from 6400/ to 6760/?” Just to announce the MSP on papers and not following on ground is proving ‘Much ado about nothing’. 

What the Govt and Farmers say?

Defending the government step, HAFED Chairman Kailash Bhagat on June 6, said, “The work of procurement of sunflower crop has been started in the state. Work is being done by HAFED to buy sunflower crop at the commercial rate of Rs 4800 per quintal and   Rs 1000 per quintal being given under the Bhavantar Bharpayee Yojana to compensate the farmers.”  

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On the other hand, Bhartiya Kisan Union, in a press release, pleads that if   sunflower is purchased by HAFED @Rs 4800 per quintal and compensation given @1000 rupees per quintal under Bhavantar Yojana, even then the rate becomes 5800 per quintal, while the MSP of sunflower is 6400 per quintal, according to this, 600 rupees per quintal is the direct loss to the farmer per quintal.  In this way, there will be a loss of Rs 6000 per acre if farmers do not get this money from Bhavantar Yojana, then this loss will be Rs 16000 per acre.

Opposition Parties slam the Govt

Major opposition parties of the state have also slammed the government for cane-charging the farmers and not acceding their demand.

Indian National Congress General Secretary and former Union Minister Kumari Selja said that lathicharge and arrest of farmers demanding minimum support price on sunflower in Shahbad, Kurukshetra is highly condemnable.

 “The government is working to suppress the voice of the farmers; it reminds us of the cruelty of the British rule. Drunk on power, the BJP-JJP coalition government wants to suppress the voice of the people of the state by adopting such repressive policies.”  She demanded that the government should ensure the purchase of sunflower crop at the minimum support price.

Indian National Lok Dal (INLD) supremo and former Chief Minister of the state Ch. Om Prakash Chautala strongly condemned the lathicharge by the police in Kurukshetra on Tuesday on farmers protesting for the purchase of sunflower crop at MSP.

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Chautala said, “The BJP government is wreaking havoc on the farmers, who feed the people of the whole country are being trampled on the roads, lathis are being showered on them, cases are being filed against them and they are being put in jail.” 

What is MSP? Why it is needed?

In the era of ups and down in the market, the farmers always remain in the loser’s side. So, to save the farmers from the unexpected losses, MSP was made an integral part of India’s agricultural price policy. It was declared in 1965 as a tool for agricultural price policy to meet many objectives. The Cabinet Committee on Economic Affairs (CCEA), Government of India, and Commission for Agricultural Cost and Prices (CACP) decides the MSP of different agricultural produce in India.

 Minimum Support Price (MSP) is fixed as the assured price rate at which the government purchases the crop produce from the farmers, when the market price falls down, It acts as a kind of assurance and insurance to protect the farmers.  

Broadly speaking, MSP assures farmers that they will get a reasonable minimum price for their crops, no matter how low the market rate goes. Second, they come to know in advance that for which crop the MSP is the more profitable price, on the basis of which they can cultivate the more profitable crop. The government also gets help in policy making and it can attract farmers towards crop diversification by setting higher minimum support price for the agricultural produce they want to be grown more.

But despite the government declaring the minimum support price already, going back on its promise not only raises questions on the credibility of the government, but also betrays the farmers by depriving them of the fixed minimum support price. The recent Kurukshetra Kisan Andolan is the sad result of the government’s action of withdrawing from procuring the sunflower crop at the declared MSP. That’s why it becomes necessary that the MSP  should be guaranteed under the law. Otherwise, it will not take long for the time to come when the farmers will start refusing to give their crops to the government for storage and the government will have to face the shortage of food grains for distribution to the poor at cheaper rates or free of cost, due to which the food security plan of the government may get a setback.

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And  such a voice has started to echo. Punjab Assembly Speaker Kultar Singh Sandhwan , while addressing a function on crop diversity at Mohali on June 8, said , “Diversification is the need of the hour and the Centre needed to understand the importance of MSP. We will need to stop raising questions on MSP. MSP will have to be given, those who raise questions on MSP they are not nationalists. If Adani can understand the importance of MSP, why cannot the government?”, reports Indian express. 

He further said that MSP needed to be given, “If you want to keep the nation happy, then you will have to keep Punjab happy. If you want Rice, we will give you Rice but you have to give us MSP.”

Now it’s in the hands of the central government, which path they choose; legalized Minimum Support Price or Manmarji Support Price. 

Jag Mohan Thaken is a Haryana based retired Senior Bank Manager, views are personal

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