Punjab farmers reject MSP hike for kharif crops as ‘peanuts’
The Union Cabinet Committee on Economic Affairs announced revised minimum support prices (MSPs) for kharif crops, with an increase of up to 10.4%. Punjab farmers have rejected the increased MSPs, calling them a "mere joke" and saying they do not account for the true cost of production. Critics say the government has failed to adopt a scientific approach and ignored the formula recommended by the Commission for Agricultural Costs and Prices.
The Union cabinet committee on economic affairs announced revised minimum support prices (MSPs) for different kharif crops on Wednesday. While terming it as mere ‘peanuts’ in the times when the state agricultural sector is facing severe economic crisis, Punjab farmers rejected the increased MSPs.
With an increase of ₹143, the MSP for paddy (common) has been revised from ₹2,040 per quintal to ₹2,183 per quintal, while MSP for Grade A paddy has been hiked by ₹163 and will be now bought for ₹2,203 per quintal as compared to last year’s ₹2,060.
The highest increase of 10.4% in MSP has been for moong at ₹8,558 per quintal, against ₹7,755 per quintal in the previous year.
The MSP for maize has been increased by ₹128 from ₹1,962 per quintal to ₹2,090.
This year, the Centre has also mentioned ₹1,455 as cost of paddy production per quintal, while it is ₹1,394 for maize production.
BKU general secretary (Dakaunda) Jagmohan Singh said the commission adopts an outdated method to determine MSP and has completely ignored the formula recommended by the Commission for Agricultural Costs and Prices (CACP).
He said the government should have adopted more serious approach as farmers in Haryana are already protesting against failure of the government in ensuring government purchase and MSP for sunflower crop.
“The hike of ₹143 per quintal in the MSP is likely aimed to woo voters before the 2024 general elections. The Centre has not adopted a scientific approach while proposing pricing for different crops. Moreover, the government has not fulfilled its poll promise of offering MSP on the C2 formula (comprehensive cost and 50% profit),” he said.
The C2 formula of calculating cost of cultivation includes the imputed cost of capital and the rent on the land to give farmers 50% returns.
Terming the hike in paddy and maize prices as a mere joke, Kirti Kisan Union secretary Santokh Singh Sandhu said it will not help farmers at all as the ground realities are completely opposite.
He said farmers have been asking the Centre to adopt the formula recommended by the Swaminathan commission.
“The production cost is much more than mentioned by the Centre. Instead, the government should have provided an MSP which accounts for basic costs incurred on production and an additional 50% profit,” he said.
Kesar Singh Bhangoo, former professor of economics in Punjabi University, said the Centre should have adopted a scientific approach and have considered the factor of rising inflation while deciding the MSP, even if C2 formula as proposed in the Swaminathan Report is not favourable in the present day scenario due to increasing cost of production every year.
