Farmers’ leaders to meet union ministers after police use pellet guns, tear gas on protesters
CRISIL Market Intelligence & Analytics. “Another critical aspect to consider is that procurement is concentrated in only a few states such as Punjab, Haryana, Madhya Pradesh, Chhattisgarh, Telangana and Uttar Pradesh, so farmers in other states don’t get the benefit of MSP. Guaranteeing an MSP across crops will spread the benefit across the country.
It will support farmers’ incomes and boost consumption demand." Currently, the cost of cultivation parameters used to calculate MSP include an imputed value of family labour, but not the rental value of farmland. Farmers have repeatedly complained that this depresses MSP figures. The protests have been organised by the Kisan Majdoor Morcha, an umbrella body of farmer unions in Punjab, Haryana and other states.
The agitating farmers’ key demand — setting MSP based on the cost of cultivation plus a 50% margin — was first recommended by the Swaminathan committee in 2006. In addition, farmers are asking for a loan waiver, social security benefits such as pensions, and a revamp of the crop insurance scheme. They also want higher duties on imported agricultural produce, as duty-free imports lead to lower farmgate prices.
The latest round of protests comes after muted farm earnings over the past year, during which the government placed export curbs on wheat, rice, sugar and onion, depressing local prices. Farm incomes were also hit by repeated climate shocks such as heatwaves and uneven rains. Meanwhile, the Punjab government extended support to farmers injured in the protests.
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