People's Democracy

MSP FOR RABI CROPS

 

AIKS Demands Review, Adequate Hikes

 

THE All India Kisan Sabha (AIKS) has strongly condemned the utter callousness of the government of India to the demands of the farmers regarding the minimum support prices (MSP) of rabi crops, a part of which has already come to the market.

 

Through a press statement issued from New Delhi by AIKS president S Ramachandran Pillai and general secretary K Varadha Rajan on October 21, the AIKS said the Congress-led UPA government has betrayed the crisis-stricken farmers of our country by announcing a paltry increase in MSP of rabi crops, turning a blind eye to the exorbitant increases in the input costs. The MSP announced on October 20 is unacceptable and is an insult to the toiling peasantry, the AIKS added.

 

The organisation opined that the UPA government’s bluff must be called and the misrepresentation of facts to create an impression that the MSP is remunerative or “handsome” must be exposed. Certain points are worth noting in this regard.

 

The government has depended entirely on the cost of cultivation data provided by the Department of Economics and Statistics and mechanically computed the MSP. These figures are unrealistic and far below the actual expenses incurred by the farmers.

 

The cost calculations by the state governments, farmers’ representatives and the AIKS --- presented before the Commission on Agricultural Costs & Prices (CACP) in its meeting on June 25, are much higher. The AIKS has also noted in this regard that the CACP, which recommends the MSP for different crops after consultation with different state governments and farmers’ representatives, has no right to verify the actual costs incurred for cultivation of different crops.

 

The AIKS took particular exception to the fact that the government has not bothered to take note of the extraordinary situation in fertiliser prices as well as fuel prices other than the increases in the costs of other inputs while determining the MSP. While urea prices have increased by 10 per cent, the prices of DAP and MoP in the domestic market have risen by over 20 per cent according to available information.

 

Giving facts and figures, the organisation noted that when compared to huge increases in input costs, it is to be noted that the MSP of wheat in 2010-11 has been fixed at merely Rs 1,120 per quintal which is an increase of a paltry Rs 20 or 1.8 per cent over the 2009-10 MSP. This is at total variance with the AIKS proposal of Rs 1,700 per quintal. Wheat, on the other hand, is being imported at higher prices from countries like Australia and the USA. Recently the landed cost of imported wheat from Australia was Rs 1,417.50 per quintal at Tuticorin port excluding other charges.

 

Similarly, the increase in the price of rapeseed and mustard is merely 1.09 per cent. In the case of gram and masur, an effort is being made to portray it as though it is a substantial increase. It has to be noted, however, that these crops grown in semi-arid conditions with a high risk factor and the prices don’t provide any incentive to farmers. One cannot miss the fact that the market price of gram and masur is almost five times higher than the MSP. The proposals put forward by the AIKS and all the state governments were far higher than the MSP announced.

 

In the light of these facts, the AIKS has demanded a review of and adequate hikes in the MSP of the different rabi crops. It also stands for a consensus on calculation of the cost of cultivation through a consultation with state governments, experts and peasant organisations, for setting at rest the discrepancies in the calculation of cost of cultivation. All MSP calculation must be based on such a consensus and should be at least 50 per cent above the cost of cultivation.

 

Comparison of AIKS Proposals With the MSP Announced