Centre's MSP Hike Criticized by SKM as Mockery of Farmer Promises

New Delhi, June 21 - The Samyukt Kisan Morcha (SKM) has openly criticized the Centre's recent announcement of a marginal increase in the Minimum Support Price (MSP) for 14 crops, labeling it as a mere 5 to 7 percent rise from the previous year. This increment, according to SKM leaders during a virtual press conference, falls significantly short of the farmers' demands for MSP to be set at the C2+50 percent formula recommended by the MS Swaminathan Committee. The SKM has also accused the BJP of betraying farmers' interests in favor of corporate entities.

The declared MSP hike by the BJP government has been termed as insufficient, especially in light of the current market inflation rates. With annual retail inflation around 5 percent and food prices inflation at 7.9 percent, coupled with a more than 10 percent increase in vegetable prices, the SKM argues that the MSP increase does not align with the economic realities faced by farmers. Furthermore, there has been no assurance regarding guaranteed purchases at these MSP rates in vegetable markets, leaving farmers vulnerable to exploitation by middlemen.

The SKM's statement highlighted the discrepancy between the government's declared MSP for paddy at Rs 2,300 per quintal and the actual cost of production, which several states and agricultural universities estimate to be much higher. They argue that based on the CACP's averaged C2 cost for paddy in 2023-24 at Rs 1,911 and accounting for nominal inflation, the actual MSP should range between Rs 3,100 to Rs 3,450 per quintal to ensure fairness to farmers.

Despite minor increases in MSP for crops like jowar, bajra, ragi, maize, arhar, and moong among others, SKM leaders have pointed out that when comparing the C2 price for these 14 crops with state government estimates and applying a 1.5 multiplier, farmers stand to lose significantly per quintal across various crops. For instance, losses could amount up to Rs 2,224 on cotton, Rs 2,296 on niger, and Rs 2,961 on sesamum.

The SKM has reiterated its accusation against the BJP for prioritizing corporate interests over those of farmers. This comes in light of previous promises made by the BJP during state elections in Odisha, Chattisgarh, and Madhya Pradesh where an MSP of Rs 3,100 per quintal for paddy was pledged but not delivered. The recent MSP hike announcement is seen as an attempt to appease farmers ahead of upcoming state assembly polls without genuinely addressing their concerns or ensuring their financial security.

In conclusion, while the government's decision to raise the MSP for paddy by 5.35 percent to Rs 2,300 per quintal for the 2024-25 kharif marketing season marks a step forward in agricultural policy under Prime Minister Narendra Modi's third term, it is viewed by many within the farming community as inadequate and dismissive of their ongoing struggles and demands for equitable pricing.