In view of the ‘Chalo Dilli’ (March to Delhi) call given by farmers’ associations to stage a protest in the national capital, Delhi Police have invoked Section 144 (prohibitory orders) for a period of 30 days till March 12. The protest march, named Farmers’ Protest 2.0, comes after the initial protests in November 2020 that resulted in the repeal of three controversial farm laws in 2021. Now, the protesting farmers, being led by over 200 unions under the banner of Samyukta Kisan Morcha (non-political) and the Kisan Mazdoor Morcha, are again on the roads with a new leadership. Now the main bone of contention between the farmers and the Central government is enacting a minimum support price (MSP) law for crops.
The main demand of protesting farmers, this time, is a legal guarantee of MSP for all the Kharif and Rabi crops, besides seeking Rs 10,000 pension for farmers above 60 years and more. At a high-level meeting with two Union ministers — Agriculture Minister Arjun Munda and Food and Consumer Affairs Minister Piyush Goyal, in Chandigarh, the Centre was favouring a committee on the issue of the MSP. The Centre did not make any commitment on a loan waiver. However, farmer leaders were adamant on a legal guarantee to MSP. They felt that several committees on the issue had already advocated the need to legalise the MSP and so another committee would have served no purpose.
The timing of this protest is noteworthy, coinciding with the run-up to the 2024 Lok Sabha elections, where the ruling BJP-led NDA government is seeking a third consecutive term. With the Narendra Modi-led government’s last Parliament sessions having been concluded, there is no room for any legislative action. An MSP for Kharif and Rabi crops would mean that the government lays down a fixed price, so that farmers get a fixed income irrespective of the amount and quality of their crop produce. No doubt, farmers have every right to seek government shield but MSP for every crop is not feasible, tenable and justified, not just politically but also economically.
In the fiscal year 2020, the market value of agricultural produce stood at Rs 10 lakh crore and this included all 24 crops under MSP purview. However, the total MSP procurement in that year stood at Rs 2.5 lakh crore, which is just 25 per cent of the produce under MSP. If the government cedes to farmers demand for legislation, thereby according it a guarantee, the exchequer would stand to bleed with additional expenditure of at least Rs 10 lakh crore annually. Notably, this amount is almost equal to the Central government’s allocation of Rs 11.11 lakh crore, in the interim budget this year, for infrastructure development. Taking out Rs 10 lakh crore out of Rs 45 lakh crore Budget expenditure (for fiscal year 2025) for crops guarantee every year will burden the economy.
