MSP hike declared by Centre a mockery of its promise to farmers: SKM

SKM noted discrepancies in the calculation of MSPs, alleging that the prices set by the Commission for Agricultural Costs and Prices (CACP) do not accurately reflect the production costs as estimated by states and agricultural universities.

The Samyukt Kisan Morcha (SKM) on Friday accused the Centre of mocking farmers by announcing an MSP hike that is only five to seven percent more than the one declared last year.

Addressing a virtual press conference, SKM leaders said the hike is nowhere close to the demanded minimum support price (MSP) at C2 plus 50 per cent formula given by the MS Swaminathan Committee.

The SKM also accused the BJP of cheating farmers to help corporate.

“MSP hike declared by the BJP government for 14 crops is only 5-7 percent above last year. It is a complete mockery of the promise of granting MSP at C2+50 per cent,” SKM leaders said in a statement issued at the press conference.

“The increase is not even keeping pace with the market inflation of food prices. While annual retail inflation is around 5 per cent, food prices inflation is 7.9 per cent and vegetable prices increase by more than 10 per cent,” the SKM, an umbrella body of farmer unions, said.

They also said that no announcement has been made regarding guaranteed purchase in vegetable mandis even at the given prices.

“Unless the govt institutes some mechanism to guarantee the prices in the mandis, the farmers are fleeced and it is the middlemen who benefit from costly food in the market,” they said.

“The BJP has been notorious in its mocking at farmers demand for raising MSP for all crops as per Swaminathan Commission recommendations. Though recently it has given Bharat Ratna to Dr Swaminathan, it is grossly manipulating the figures to severely under state the price,” the SKM said. The SKM said the declared MSP for paddy at Rs 2,300 per quintal is just about equal to the actual cost of production as per estimates made by several states and studies by agriculture universities.

The farmer leaders also said that the problem originates from the terms used by the Commission for Agricultural Costs and Prices, which fixes the MSPs.

“The CACP has averaged the C2 cost for paddy in 2023-24 at Rs 1,911 which is a gross under estimation. Even this value, with a nominal inflation rate of 7 per cent for this kharif season, the C2 cost will be Rs 2,044 and 1.5 times will be Rs 3,066,” the release said.

“Thus, the actual MSP should be at least Rs 3,100 to 3450 (for paddy),” it added.

The leaders said the MSP for jowar has been raised by Rs 191, which is a 5.66 percent hike, while for Bajra, it’s an increase of Rs 125 from Rs 2,625, ie, 4.76 percent. Similarly, the increase in the price of Ragi is Rs 444 (10.34 percent), Maize, Rs 135 (6.6 percent), Arhar, Rs 550 (7.28 percent), Moong, Rs 124 (1.42 percent), among others.
They said when they compared the C2 price for 14 crops with the C2 estimates of crops by state governments and multiplied it by 1.5, it was found that for every quintal of produce the farmers will lose up to Rs 2,224 on cotton, Rs 2,296 on niger, and Rs 2,961 on sesamum.

The calculation results also showed that a loss of Rs 2,611 would be incurred on sunflower, Rs 2,344 on urad, Rs 2,274 on moong, Rs 2206 on arhar, Rs 1,713 on groundnut, Rs 1,555 on soyabean, Rs 1,066 on jowar and Rs 712 on paddy and similar on other crops.

The SKM accused the BJP of cheating farmers to help corporate.

“While the BJP itself had promised an MSP of Rs 3,100 per quintal for paddy in Odisha during state elections and a similar amount last year during Chattisgarh and Madhya Pradesh elections, it has now recommended Rs 2,300,” the statement said.

“It is also shamelessly claiming that the prime minister is giving importance to farmers. This is only to help the big corporate houses and foreign exploiter MNCs who are rooting for Indian agriculture markets for cheaper produce,” it added. The government on Wednesday raised the MSP for paddy by 5.35 per cent to Rs 2,300 per quintal for the 2024-25 kharif marketing season, a move that comes ahead of key state assembly polls.

The MSP increase in the 14 kharif (summer) crops is the first major decision of Prime Minister Narendra Modi’s third term in office.