BJP Government’s Claims About Kharif MSP Decision Being 'Historic' Falls Flat: AIKS

Reacting to the Union Cabinet proposal to hike the Minimum Support Price (MSP) for various Kharif crops this year, All India Kisan Sabha (AIKS) on Wednesday said that it was the historic betrayal of farmers by Narendra Modi led BJP government. 

The AIKS, in a statement said, "BJP government had generated high hopes and got the support of farmers in 2014 elections by promising that the Swaminathan commission recommendation of fixing MSP according to the formula C2+50%. It has betrayed them yet again by announcing MSP for the Kharif crops based on A2+FL costs instead of the promised more comprehensive C2 costs. Also no steps have been taken to ensure assured procurement. Without assured procurement any such announcement is only notional and will not accrue to the cultivating peasantry. The BJP Government’s tall claims that the decision on Kharif MSP is “historic”, falls flat when one compares with the actual promise and the gap between A2+FL and C2 costs. It actually is a historic betrayal of the promise made to farmers of fixing MSP at a level of at least 150 percent of the C2 cost of production." 

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Ashok Dhawale, National President of All India Kisan Sabha said in his statement, "Four years of the BJP government has passed without doing anything for farmers and they are now seeking to hoodwink farmers by making an aggressive campaign on the eve of impending elections. AIKS condemns this callous attitude of the BJP Government that exposes its utter failure and calls for revision of MSP according to the Swaminathan Commission recommendations and for ensuring assured procurement. AIKS has chalked out mass Jail Bharo campaign, on 9 August and massive Mazdoor Kisan Sangharsh Rally on 5 September. We call upon all democratic organisations and individuals interested in farmers’ welfare to join in much greater numbers in these protests against the betrayal by the BJP Government."

On 4 July, the Union Cabinet has approved the Budget 2018 proposal to hike the Minimum Support Price (MSP) for various Kharif crops this year. The government had earlier promised to increase the MSP of the crops to one and half times of the production cost,  but the formula used in calculating the MSP was not in line with the one provided by MS Swaminathan Commission or National Commission of Farmers or as demanded by farming communities.

Speaking to NewsClick Swaraj India leader Yogendra Yadav said that if he summarise this move in one sentence it would be that it is due to the farmers' struggle and BJP’s electoral setback and it is just a partial fulfilment of PM Modi promise.

He said, "It is nothing historic but it is more than what Modi government has given in the last four years. It would finally translate into some gains for the farmers and therefore it should be welcome but this is not the hike that Swaminathan Commission had recommended. This is not what the farmers movement have been demanding  and this is not the hike that Prime Minister Narendra Modi had promised before 2014 Lok Sabha elections."

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"Though previous regime was not good for the farmers but comparing UPA II with BJP's MSP hike, even if you take all five year into account, it is still worst than the second tenure of the UPA government. It is not an immediate relief to farmers, it is merely a promise, the fulfilment of which depends on government procurement and intensive support, something that has been lacking till now," Yadav further added. 

He further said that ideally, the announcement should have come at least one-two months back when farmers could have taken an informed decision. This would have also helped in the much-needed diversification of crops.  

A table was also prepared by AIKS while raising these points : 

1. It clearly shows that if the promised C2+50% formulas was used for calculating MSP, it should have been much higher. 

2. It also has to be noted that there is huge disparity in cost calculation by Central agencies and states. Centrally determined costs are much lower than the costs determined by the state agriculture department. Both of these fall below farmers' actual costs.

3. The MSP recommended by the state governments (including BJP ruled states) based on their costs is much higher than MSP announced.

4. Public procurement is mainly taking place only in few crops like paddy and wheat and that too is below 20 percent of the total production, In most other crops there is no procurement in most states.