Friday, 17 May, 2024
Some analysts who habitually criticise the current government say it is merely posturing and is not interested in the welfare of farmers.
A few days ago, the Union Government announced the setting up of a panel of experts and representatives of farmers to finalise details for a new Zero Budget Farm Policy and resolve the contentious issue of minimum support price. It invited the Samyukta Kisan Morcha-an omnibus body representing various farmer groups-to identify its members who cold join the panel and start deliberations. The SKM rejected the invitation outright claiming it was full of government servants and “loyalists” who are not interested in doing justice to the farmers. It was adamant about the government passing a new legislation to make the payment of MSP for all crops legally obligatory and mandatory. The government has steadfastly maintained that such a law is not practical and its track record in the last eight years shows that it is committed to raising farmers’ incomes. A story published yesterday in India Tracker quoted a study by the State Bank of India that indicated that farm incomes for some crops had indeed doubled between 2017 and 2022.
Just for the record, the SKM had led the protests against the three reform measures passed as three bills by the Parliament in 2020. The protestors had virtually laid siege to the capital Delhi and blocked many highways, causing immense inconvenience to citizens apart from economic damages. During Republic Day in 2021, a rowdy section of the protestors had gone on rampage in Delhi indulging in arson and even “invading and capturing” the iconic Red Fort. Finally, the government had to blink and the three farm laws were withdrawn in November 2021. But if you look at data, it becomes clear that contrary to claims made by critics, the government has actually been raising the MSP for the major crops virtually every year, though not in spectacular terms. As the accompanying chart will show, the MSP for wheat has been increased by the government from Rs 1510 per quintal in 2016-17 to Rs2020 in the current financial year. The hikes are definitely not steep; but they have definitely grown faster than wages for rural and urban workers. Besides, since 2019, the government spends about Rs 65,000 crores every year making direct cash transfers to the bank accounts of farmers. On top of that, the fertiliser subsidy bill for the year 2021-22 was Rs 1,42,000 crores. Not to mention an expenditure of almost Rs 100,000 crores on NREGA.
Source: Ministry of Agriculture
Why then are a section of farmers so angry? Some analysts who habitually criticise the current government say it is merely posturing and is not interested in the welfare of farmers. Analysts who are sympathetic to the government say the SKM doesn’t truly represent the farmers of India and is acting more as a political body. India Tracker wont dive into the debate but would look at data. It was the said that the farmers agitation and their anger would cost the BJP dear in western Uttar Pradesh in the 2022 assembly elections. When the results came out, the BJP had virtually swept the farmer dominated region.
