Despite tripling the MSP, why is Modi's government under fire from farmers?

Central Agriculture Ministry statistics show that under Manmohan Singh's UPA, farmers received MSP totaling ₹7,04,339 crores, while under Modi's governance, this figure soared to ₹23,12,267 crores.
Data from the Agricu

Source: aajtak

For years, the Minimum Support Price (MSP) of crops has been a pivotal issue for farmers, now becoming a significant political tool. A majority of protesting farmer organizations claim that the Modi government is intent on abolishing the MSP, while the main opposition party, Congress, leaves no stone unturned in challenging the ruling coalition on this in Parliament. But has any farmer organization or party genuinely attempted to examine how much the Manmohan Singh government vs. the Modi administration has provided to farmers? Examining these figures clearly shows which administration fortified farmers economically.

Data from the Ministry of Agriculture indicates that during the ten-year UPA administration led by Manmohan Singh, ₹7,04,339 crores were allocated for farmers through MSPs. In contrast, the Modi government has elevated this to an impressive ₹23,12,267 crores. This isn't just a vast numerical gulf; it speaks volumes about policy wisdom, priority measures, and the outlook towards farmers. Yet, the question arises, why is the Modi administration targeted by farmers despite delivering more than three times the MSP compared to the Congress government?

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The question remains, has the Modi administration substantially increased farmers' incomes? Or is it merely an inflation-driven numbers game? Has the government also scaled up its crop purchases? And has the touted economic revival truly changed the ground realities? Let us delve into the data and compare both administrations regarding MSP-acquired crop purchases, determining which party shows a variance between words and actions. This analysis could reshape opinions about both the government and Congress, especially when considering the threefold gap. The essence of the MSP program ensures that farmers receive fixed prices despite market fluctuations.

Ministry of Agriculture statistics show financial allocations under UPA and Modi's administrations.

Source: aajtak

Increased Focus on Pulses and Oilseeds

MSP establishes a critical foundation for fair farmer income. While some government backers oppose the system, it's noteworthy that the NDA government has expended over triple the funds on MSP in its tenure compared to UPA's decade. Under the Modi administration, the government's procurement has expanded beyond just rice and wheat to encompass pulses, oilseeds, and cotton. This signifies the government’s staunch support for crop diversification.

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Financial insights under UPA vs. NDA governance reflecting MSP allocations.

Source: aajtak

Will MSP End?

The government's stance strongly suggests that it will continue to procure crops under MSP. Rather than retracting, the government plans to enhance MSP-based acquisitions. Abandoning such a system, established initially by Lal Bahadur Shastri, cannot be contemplated due to ongoing food security needs. It is essential to source grain from farmers directly as outsourcing is not feasible.

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In the years since the introduction of wheat MSP in 1966-67, consequent administrations not only expanded the list to new crops but also increased procurement. Current figures emphasize the Modi government's unprecedented MSP commitments, offering farmers more substantial financial backing than ever before.

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Visual representation of UPA and NDA MSP allocations.

Source: aajtak

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Farmers' Demands on MSP

Presently, the government declares MSP based on an A2+FL formula, yet guarantees are lacking. Thus, farmer organizations have crucial demands. Their first demand is price setting based on the C2 formula. Currently, rice MSP stands at ₹2,300 per quintal, but with the C2 benchmark, it would be ₹3,012 per quintal. Moreover, they seek a legal assurance to prevent both government and private entities from purchasing agricultural produce below MSP. So far, seven rounds of talks have ensued between government representatives and farmer groups regarding these MSP-centric matters.

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