MSP, loan waiver and crop insurance, crucial issues for farmers
The Hindu
Budget expectations for farmers: MSP at C2+50%, loan waiver, crop insurance, irrigation, MGNREGA, land reforms, wealth tax, corporate tax.
The Bharatiya Janata Party-led National Democratic Alliance faced huge setbacks in the Lok Sabha elections in the agrarian belts of the country. The BJP lost in at least 38 seats in five States where the farmers’ movement against the policies of the Narendra Modi government was strong. This government is a continuation of the first two Narendra Modi regimes that favoured the corporate houses and tweaked policies in the agriculture sector in their favour.
Farmers expect that this government make a radical break from all its earlier Budgets. Of course, this is asking for a tall order. But unless that is done, the farmers’ unrest and agrarian crisis are not going to subside. The National Crime Records Bureau’s data tells us that 1,00,474 farmers and agricultural workers committed suicide between 2015 and 2022. This figure is growing and is a tragic indication of India’s agrarian crisis.
The most important issue for farmers in the country today is statutory minimum support price at the rate of C2+50%, that is one and a half times of the comprehensive cost of production, as recommended by the M.S. Swaminathan Commission. This was a promise made by Narendra Modi and the BJP manifesto in 2014. Now, they are silent on this. Unless that’s done, it’s going to be impossible even to begin to resolve the agrarian crisis. They will have to make Budgetary provisions to implement this. This is our first demand. But to do this, they will have to hold discussions with farmers’ movements. There have been no such discussions.
The second point is about the rising cost of production. Our expectation from this year’s Budget is that the government bring down production costs by reducing prices of fertilizers, seeds, insecticides, diesel, water and electricity. Rates of all these inputs are going up. Even if farmers are to be given MSP at C2+50%, the cost of production must be brought down. A statutory MSP at a rate of C2+50% may have no meaning if the costs of production are not brought down.
The government can bring down these prices by having a strict control through the Budget on the corporates who are now part of the production process of these inputs. Earlier, most of these inputs were produced by the public sector. The Budget must support public sector companies to continue to be engaged in the production of fertilizers, insecticides and seeds. This government talks of self-reliance, but does nothing to improve self-reliance. This is apparent in the case of fertilizers.
The third expectation from this Budget is a complete one-time loan waiver for farmers and agricultural workers nationwide. Unless this is done, farm suicides cannot be prevented. This government has written off loans worth ₹16 lakh crore of corporates. And, they say they don’t have money to waive loans of farmers. Loan waiver, bringing down the cost of production and ensuring MSP at a rate of C2+50 must be done together. If this is done, 70% of the crisis in the farm sector can be dealt with.
The fourth point is relevant in the context of climate change. In light of regular droughts, floods, unseasonal rains and hailstorms, there must be a comprehensive crop insurance scheme, which is totally different from the Pradhan Mantri Fasal Bima Yojana. Several States have opted out of it. Some States have begun their own scheme. This is because PMFBY is working in the interest of insurance companies, and not farmers. Budgetary provision must be made for a comprehensive scheme that helps farmers.