Government guarantees minimum support price for maize, pulses, cotton for 5 years

Piyush Goyal

The government will provide a minimum support price (MSP) guarantee for maize, pulses, and cotton for five years, Food and Consumer Affairs Minister Piyush Goyal said, aiming to persuade farmers to call off their protests.

This decision was made "considering the welfare of farmers and declining water levels", he said on March 8.

"This decision will benefit farmers who are diversifying their crops. Those who cultivate crops with lower water consumption, such as lentils and maize, will benefit from the MSP guarantee. This decision will be implemented nationwide," Goyal said.

The government has finalised a process to implement the decision and has developed a portal where farmers will have to register and provide an undertaking that they have diversified their crops.

The minister added that registered farmers can also sell their produce to NCCF, NAFED, and CCI. The government will use satellite images and crop insurance data to verify if farmers have diversified their crops. The government aims to use purchased pulses to create buffer stocks, which will later be used to control pulse prices.

Decision in the Interest of Farmers

It is worth mentioning that farmers have been protesting for a consistent Minimum Support Price (MSP). During this time, the government had also proposed MSP for some crops to the protesting farmer organizations, which they rejected. According to Piyush Goyal, "The government believes that this decision is in the interest of farmers, so it will be implemented."

Government Concerned About Declining Water Levels

The government is concerned about declining water levels in many areas. According to the Dynamic Groundwater Resources Assessment of India - 2017 report, out of 138 blocks in Punjab, 109 blocks have deteriorated significantly, with two critical and five semi-critical situations. Only 22 blocks are safe. In recent years, the cost of extracting water from the ground has increased for small farmers, resulting in reduced input costs for crops that do not require much water.

The government believes that maize cultivation will be used for ethanol blending. By 2025, the government has set a target of 20% ethanol blending, which will help reduce dependence on crude oil imports, promote renewable energy, and control pollution from vehicles. Increased cultivation of pulses can also help reduce dependence on imports.