Why are the farmers protesting in Delhi again?

By: Anshul Vipat

The farmers union had alleged that the Centre has done “nothing” regarding their promises made to the farmers

The week started on a miserable note for Delhities who had to face hardships after a massive protest was launched by the farmers in the national capital's Jantar Mantar on Monday. The protest or the mahapanchayat was called by the Samyukta Kisan Morcha (SKM), an umbrella body of 40 farmers' union which had held a year-long agitation against Narendra Modi govt's three farm laws on Delhi borders. The mahapanchayat was a day-long event to reiterate the farmers’ demands of minimum support price (MSP) and the cancellation of the Electricity Amendment Bill 2022. Another reason for the mahapanchayat is also to discuss the rising unemployment in the country.

The farmers union had alleged that the Centre has done “nothing” regarding their promises made to the farmers. They have threatened that if their demands are not met, they will only intensify their stir — as they did back in 2020. According to them, they have received support of farmers from Punjab, Haryana, Uttar Pradesh, Maharashtra, Telangana and Tamil Nadu.

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, MSP rate has been hiked by about 2-5 per cent annually in the past couple of years. Infact, MSP for Ragi, Jowar, and Bajra has witnessed a massive 50-75 percent jump. In 2022, the Modi government announced minimum support prices (MSP) for 14 crops — including grains, pulses, oilseeds and cotton — to be planted during the June to October Kharif season. Accordingly, MSP was waised by 6 percent average, the highest in four years.

While SKM has been demanding 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. A few days back, Indiatracker did a story that indicated that farm incomes for some crops had indeed doubled between 2017 and 2022.

Another reason for the mahapanchayat is also to discuss the rising unemployment in the country. While unemployment is a burning issue in the country, the unemployment rate is actually falling in the last six months. Contrary to the claims, unemployment rate dropped to 6.80 per cent in July from 7.80 per cent in June. Infact, in July, the agriculture sector in the rural area absorbed an additional 9.4 million workforce.

What the farmers really need to protest is rapid modernisation of agriculture, and elimination of dominance of middlemen that denies farmers a fair price. The protesters are silent on this, while the laws seek to redress this distortion.