MSP for Rabi crops raised - Farm protests continue

The government has announced the MSPs for upcoming Rabi season, a bit in advance

 MSP for Rabi crops raised - Farm protests continue

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• The story: The farmers' protests in India completed nine months in September 2021, and there was a new momentum seen after the "mahapanchayat" at Muzaffarnagar. As the protests raged, union government proactively announced a raise in Rabi MSPs, ahead of regular schedule.
• The plan: The MSP hikes were in line with long-standing govt policy of encouraging oilseeds and pulses cultivation to meet rising demand and deter farmers from growing wheat and rice which are already in abundance.

1. Wheat MSP for 2022-23 marketing season has been raised by 2.03 per cent, among the lowest in the last several years, as compared to 2021-22 from Rs 1,975 per quintal to Rs 2,015 per quintal
2. MSP of masur (lentil) and mustard has been raised by 7.84 per cent and 8.60 per cent as compared to 2021-22
3. Among other main rabi crops, the MSP of gram has been increased by 2.55 per cent from Rs 5,100 per quintal in 2021-22 to Rs 5,230 per quintal in 2022-23

• Reactions: The increases did not convince the protesting farmers, many of them from the main wheat, mustard and gram growing regions of Punjab, Haryana and western Uttar Pradesh.

1. Farmers alleged that in real terms, the MSP increase is infact negative as inflation has been over 6 per cent in the last few months
2. The official statement itself showed that the cost of production for wheat between 2021-22 and 2022-23 marketing seasons has increased at a higher rate than the MSP increase in absolute terms (as per the farmer unions)
3. Another problem pointed out was that the nominal rise will have little impact as procurement is less than a fraction of the total production

• Logic: Experts say that that the government’s objective is to encourage farmers to diversify from cereals to oilseeds and pulses through higher MSPs. But that was not clear in this MSP decision as returns on wheat and mustard over their production cost is same at 100 percent while in pulses which needs encouragement it is lesser than wheat and in safflower the return is 50 per cent of the production cost.

1. The PM while welcoming the cabinet decision on Rabi MSP said that the move will ensure maximum remunerative price for farmers and also encourage them to sow a wide variety of crops.
2. Agriculture Minister said that the announcements show that MSP was there and will always remain and those who are spreading lies about its abolition should learn from today's decision.

• Knowledge centre:

1. MSPs - The Minimum support price (MSP) is a “minimum price” for any crop that the government considers as remunerative for farmers and hence deserving of “support”. It is also the price that government agencies pay whenever they procure the particular crop. The government announces the MSP at the start of each cropping season. The MSP is decided after the government exhaustively studies the major points made by the Commission for Agricultural Costs and Prices.
2. Kharif and Rabi - The crops that are sown in the rainy season are called Kharif crops (summer or monsoon crop) in India. Paddy, maize, soyabean, groundnut and cotton are kharif crops. Crops that are grown in the winter season, from November to April, are called Rabi crops. Examples of rabi crops are wheat, gram, pea, mustard and linseed.
3. Zaid crops - Agricultural crops which are grown in the short duration between Rabi and Kharif crop season, mainly from March to June, are called Zaid crops. Examples are Watermelon, Muskmelon, Cucumber, Bitter gourd, Fodder crops and Pumpkin.
4. CACP - The Commission for Agricultural Costs & Prices came into existence in January 1965. It is called CACP since 1985, and was earlier named Agricultural Prices Commission. The CACP plays a key role in handling market inefficiencies. It provides an assurance of a remunerative and stable price environment.

• EXAM QUESTIONS: (1) Explain the system of MSPs for crops, in India. Is it useful or harmful? (2) Explain the reasons farmers are agitating against the new Farm Laws in India. (3) What are the various reasons MSPs were created in the 1970s? Explain. (4) Explain in brief the "Green Revolution" in India.

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