Centre promises purchase on MSP, awaits panel report to bolster system
Amid Punjab farmers’ attempted Delhi march over legal backing for the minimum support price regime, the BJP-led NDA government today assured them of continued procurement on the MSP and further strengthening of the system.
Official sources said the Centre was awaiting the report of the expert committee formed in 2022 after the withdrawal of the farm laws to further strengthen the MSP system.
Chouhan ‘Kisano ka Laadla’: VP
After rapping Shivraj Chouhan in public for not talking to agitating farmers from Punjab, Rajya Sabha Chairman Jagdeep Dhankhar on Friday called him 'Kisanon ka Laadla'
The committee chaired by former Agriculture Secretary Sanjay Agarwal has been asked to suggest ways to make the MSP system more effective and transparent; examine feasibility of granting greater autonomy to the Commission for Agricultural Costs and Prices (CACP); and recommend measures to strengthen agricultural marketing systems, natural farming and crop diversification. It has met six times with over 35 meetings of sub-committees held.
Agriculture and Farmers’ Welfare Minister Shivraj Singh Chouhan today said it was the BJP-led NDA government that had accepted the MS Swaminathan Commission formula to calculate the MSP by adding 50 per cent profit on the cost of production. Under the Congress-led UPA, minister Sharad Pawar and KV Thomas had refused to accept the formula saying it would distort the markets, he said.
“We want to assure farmers we will keep calculating the MSP at 50% profit on the cost of production and procuring on the MSP, unlike the Congress which never honoured them,” Chouhan said as the Rajya Sabha discussed the farmers’ issue and the MSP during question hour.
The minister also clarified that there was no move to draft a farm loan waiver plan. “We believe in raising incomes so that farmers do not have to fall into debt traps,” Chouhan said.
BJP insiders spoke of how and why the PM Kisan Samman Nidhi was started in 2019 in the first place. “Loan waiver is a short-term measure. We calculated input costs small farmers with 2.5 acre land incur in a farming cycle and arrived at a Rs 5,800 figure. Based on this, we decided to give Rs 6,000 annual income support to farmers under the Kisan Samman Nidhi. This has ensured small farmers who are 82 per cent of all farmers do not need loans,” a senior BJP leader said.
The Agriculture Minister, meanwhile, shared MSP data to impress upon the agitating farmers about the “genuine intentions of the Centre”.
He first cited how the agriculture Budget had risen substantially from Rs 21,900 crore between 2004 and 2014 (UPA regime) to Rs 1,22,528 crore between 2014 and 2024 (NDA). “Let me make it clear that the MSP is given when a crop is sold at a rate lower than the MSP rate. Many crops are sold above the MSP and therefore are not required to be procured on the minimum support price,” Chouhan said.
He shared data showing that the procurement of kharif crops on the MSP under the BJP-led NDA (2014-24) was 71,27,00,000 MT as against 46,79,00,000 MT under the Congress-led UPA (2004 to 2014). Rabi procurement for corresponding regimes was 23,20,00,000 MT (UPA) and 32,29,00,000 MT (NDA).
“MSP paid to farmers was Rs 4,44,000 crore under the UPA and Rs 12,51,000 crore under the NDA. The MSP paid for wheat alone was Rs 2,65,000 crore under the Congress rule and Rs 5,65,000 crore under that of the BJP,” Chouhan said citing data and urged farmers to look at the Centre’s “pure intentions”.
BJP leaders privately also pointed out that of 13 crore farmers in India, a few hundreds were on protest in Punjab. “We hope the protesters will see how the NDA government has strengthened the MSP regime,” said a BJP source.
