People's Democracy

Expose the Farce in the Name

of Remunerative Prices: AIKS

THE All India Kisan Sabha has condemned the central government's insensitive approach to farmers' plight as was evident in its announcement of Minimum Support Prices (MSP) for Kharif crops, 2010-11 on June 8, 2010. Taking strong objection to this farcical attempt of the government, AIKS president and general secretary in a statement on June 9, 2010 demanded from the government a revised MSP in line with the realistic proposals put forward by the AIKS.

The AIKS leaders charged that the announcement of MSP does not take into account the increase in input costs especially the increase in prices of urea and fertilisers like MOP and DAP as well as increase in petrol and diesel prices. Farmers have been forced to pay extremely high prices for DAP and MOP after the decontrol of prices under the Nutrient Based Subsidy Regime. The MSP announced does not provide any additional incentive to the farmers to cultivate the crops.

“Far from meeting the consistent demands of farmers for remunerative prices, the government has indulged in a farce and refused to fix prices anywhere near the C2+50 per cent suggested by the National Commission on Farmers headed by Dr M S Swaminathan.

“The MSP of Paddy (Common) has been fixed at Rs 1000 per quintal and of Paddy (Grade A) at Rs 1030 per quintal, which represents an increase of merely Rs 50 per quintal over the last year’s MSP. It is to be noted that the All India Kisan Sabha had demanded Rs 1500 per quintal and Rs 1600 per quintal for Paddy (Common) and Paddy (Grade A) respectively. The State of Kerala is already providing Rs 1200 per quintal for Paddy (Common) along with other production incentives as well as effective procurement.

“Another crop for which the government has announced the MSP with much fanfare is Arhar (Tur) for which it has been fixed at Rs 3000 per quintal. It is notable that the Karnataka Tur Board has come forward to procure at Rs 4000 per quintal which was the proposal placed by the Kisan Sabha at the CACP meeting. The increase in MSP of other pulses like Moong and Urad is also far below the expectations of the farmers who grow it under extreme conditions in arid/semi-arid regions of India. It has to be noted that even if we take conservative estimate of the prices of pulses in the market ranging from Rs 80/kg to Rs 100/kg it would amount to Rs 8000/quintal to Rs 10,000/quintal. Farmers are being given merely Rs 3000 per quintal while the traders and corporate sector rakes in super profits at the expense of consumers including farmers who are net buyers.

“Unfortunately the government also has not paid any heed to the demands for remunerative prices for coarse cereals produced by largely small and marginal farmers as well as tribals. No effective procurement also takes place. Ironically there is also no increase at all in prices of cotton from 2008-09 onwards despite the fact that exorbitant input costs and unremunerative returns for cotton farmers has been the single largest cause of suicides in Vidarbha, parts of Andhra Pradesh and other places.”

The AIKS felt that it will be worthwhile to compare the MSP announced with the Kisan Sabha proposals that were arrived at by a realistic assessment of Costs of Production and reasonable pricing to provide incentive to farmers and leave them with some investible surplus to carry on with cultivation in the next season. (see accompanying table)

Commodity	Variety	MSP Approved for 2009-10 (Rs/Qtl)	MSP Approved for 2010-11 (Rs/Qtl)	MSP Proposed by AIKS for 2010-11
PADDY	Common	950/-	1000	1500
	Grade A	980	1030	1600
JOWAR	Hybrid	840	880	1400
	Maldandi	860	900	1500
BAJRA		840	880	1400
MAIZE		840	880	1400
RAGI		915	965	1500
ARHAR(Tur)		2300	3000	4000
MOONG		2760	3170	3500
URAD		2520	2900	3800
COTTON	Medium Staple	2500	2500	4500
	Long Staple	3000	3000	5000
GROUNDNUT	In Shell	2100	2300	3500
SUNFLOWER		2215	2350	3500
SOYABEEN	Black	1350	1400	2500
	Yellow	1390	1440	3000
SESAMUM		2850	2900	3200
NIGERSEED		2405	2450	2800