{"id":421314,"date":"2024-02-19T09:02:00","date_gmt":"2024-02-19T09:02:00","guid":{"rendered":"https:\/\/haftavasool.com\/haftavasool\/blog\/2024\/02\/19\/explained-centres-5-year-msp-plan-and-why-farmers-are-not-convinced\/"},"modified":"2024-02-19T09:02:00","modified_gmt":"2024-02-19T09:02:00","slug":"explained-centres-5-year-msp-plan-and-why-farmers-are-not-convinced","status":"publish","type":"post","link":"https:\/\/haftavasool.com\/haftavasool\/blog\/2024\/02\/19\/explained-centres-5-year-msp-plan-and-why-farmers-are-not-convinced\/","title":{"rendered":"Explained: Centre&#8217;s 5-Year MSP Plan, And Why Farmers Are Not Convinced"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div itemprop=\"articleBody\" id=\"ins_storybody\"><!-- \n\n<div itemprop=\"articleBody\" class=\"sp-cn ins_storybody\" id=\"ins_storybody\">--><\/p>\n<div class=\"ins_instory_dv\">\n<div class=\"ins_instory_dv_cont\"><img decoding=\"async\" title=\"Explained: Centre's 5-Year MSP Plan, And Why Farmers Are Not Convinced\" alt=\"Explained: Centre's 5-Year MSP Plan, And Why Farmers Are Not Convinced\" id=\"story_image_main\" src=\"https:\/\/c.ndtvimg.com\/2021-03\/gnqriil8_farmers-generic-bloomberg_625x300_30_March_21.jpg\"\/><\/div>\n<p class=\"ins_instory_dv_caption sp_b\">Delhi Farmers Protest: Farmers have been protesting the MSP issue since the 2020\/21 agitation (File).<\/p>\n<\/div>\n<p><b class=\"place_cont\">New Delhi: <\/b><\/p>\n<p>The deadlock between the government and <a href=\"https:\/\/www.ndtv.com\/topic\/farmers-protest\" target=\"_blank\" rel=\"noopener noreferrer\">protesting farmers<\/a> rolled into a second week Monday, with no definite breakthrough after four rounds of talks but signs of an accord on the horizon.<\/p>\n<p>At a meeting late Sunday the government &#8211; facing a second round of farmers&#8217; protests, this time just weeks before a general election &#8211; relented on the subject of <a href=\"https:\/\/www.ndtv.com\/topic\/msp\" target=\"_blank\" rel=\"noopener noreferrer\">MSP, or minimum support price<\/a>, proposing a five-year contract to buy pulses, maize, and cotton. The farmers &#8211; for whom MSP is a red-flag issue &#8211; asked, and were given, 48 hours to confer, and have put &#8216;Delhi Chalo 2.0&#8217; on hold.<\/p>\n<p>A legal assurance for MSP is seen as No.1 on the farmers&#8217; wish list.<\/p>\n<p>The two sides met in Chandigarh, with the government represented by three union ministers, including Commerce Minister Piyush Goyal.<\/p>\n<p>The first signs, though, are not encouraging, with farmer leaders telling NDTV the government must offer guarantees on all 23 crops, and not just dal or maize. Those from Punjab &#8211; from where a bulk of protesting farmers hail &#8211; have pointed out their share of growing of pulses or maize is, in any case, low.<\/p>\n<p>&#8220;There is no benefit to Punjab, Haryana farmers from this incomplete proposal.&#8221;<\/p>\n<h3><strong>Farmers-Government Agree On MSP?<\/strong><\/h3>\n<p>In brief, the following points emerged from the Chandigarh meeting.<\/p>\n<ol>\n<li>Union cooperative societies like NCCF, or National Cooperative Consumers Federation, and NAFED, or National Agricultural Cooperative Marketing Federation of India &#8211; will sign a five-year contract to buy dal or maize<\/li>\n<li>Under this contract the above crops will be bought at MSPs.<\/li>\n<li>There will be no limit on purchase quantities\u00a0and\u00a0a\u00a0website will be made.<\/li>\n<\/ol>\n<p>Mr Goyal said the\u00a0<a href=\"https:\/\/www.ndtv.com\/india-news\/farmer-leaders-meeting-piyush-goyal-proposal-msp-crops-underground-water-inform-tomorrow-5083673\" target=\"_blank\" rel=\"noopener noreferrer\">offer is part of a long-term strategy<\/a> to increase maize production &#8220;as a major feed stock for grain-based ethanol supply&#8221;.<\/p>\n<p><strong>READ |\u00a0<\/strong><a href=\"https:\/\/www.ndtv.com\/india-news\/centres-5-year-proposal-to-farmers-demanding-safety-net-on-crop-prices-5084475#pfrom=home-ndtv_bigstory\" target=\"_blank\" rel=\"noopener noreferrer\">Centre&#8217;s 5-Year Formula To Farmers For Crop Prices Safety Net<\/a><\/p>\n<p>It will save Punjab&#8217;s farming sector, improve groundwater table, and save land &#8211; already under stress &#8211; from getting barren, he explained.\u00a0The government &#8211; trying to encourage maize and dal is part of its &#8220;crop diversification&#8221; &#8211; set the MSP maize at Rs 2,090 per quintal last year, up from Rs 1,760 in 2019.<\/p>\n<p>Concerns over groundwater have been expressed in the past too; in November last year the Supreme Court warned Punjab to take measures &#8211; including switching to maize. This was in the context of a hearing on air quality pollution &#8211; triggered by burning of farm (paddy) waste &#8211; in the Delhi region.<\/p>\n<p><strong>READ |\u00a0<\/strong><a href=\"https:\/\/www.ndtv.com\/india-news\/punjab-chief-minister-bhagwant-mann-said-we-had-asked-for-msp-guarantee-on-purchase-of-pulses-5083855\" target=\"_blank\" rel=\"noopener noreferrer\">&#8220;We Asked For MSP Guarantee For Purchase Of Pulses&#8221;: Bhagwant Mann<\/a><\/p>\n<p>An estimated record 346.13 lakh tons of maize was grown in 2022\/23.<\/p>\n<h3><strong>Current MSP Scheme<\/strong><\/h3>\n<p>At present MSP is offered on 23 crops apart from staples like paddy, wheat, pulses, and maize. These include ragi, groundnut, soybean, sunflower seeds, barley, rapeseed, and mustard.<\/p>\n<p>2023 prices were announced in June, when kharif crop MSPs were increased &#8211; and fixed at a level at least 1.5 times the All-India weighted average cost of production &#8211;\u00a0&#8220;to ensure remunerative prices for their produce and to encourage crop diversification&#8221;.<\/p>\n<h3><strong>Farmers&#8217; MSP Demand<\/strong><\/h3>\n<p>In addition to a legal backing for MSPs, the farmers want the Swaminathan Commission&#8217;s recommendations to be implemented, as well as pension for farmers and farm labourers.<\/p>\n<p>The Swaminathan Commission&#8217;s recommendations on MSP are worth mentioning, since it suggested the floor price be set at least 50 per cent above the weighted average cost of production.<\/p>\n<p><strong>READ |\u00a0<\/strong><a href=\"https:\/\/www.ndtv.com\/india-news\/farmers-set-for-mega-delhi-chalo-march-what-are-the-key-demands-5047380\" target=\"_blank\" rel=\"noopener noreferrer\">What Are Key Demands Of Farmers That Remain Unresolved?<\/a><\/p>\n<p>This is known as the C2+50 formula, which factors cost of capital and land rent in setting MSPs.<\/p>\n<p>The umbrella farmer body behind this round of protests, the Samyukt Kisan Morcha, has indicated it is unwilling to accept anything less than that formula.<\/p>\n<h3><strong>What Is MSP?<\/strong><\/h3>\n<p>MSP is a form of market intervention and refers to a set fixed by the government to protect farmers from a steep fall in crop prices; for example, during a bumper crop when prices plummet.<\/p>\n<p>Essentially, every year the government purchases a quantity of certain crops, the list and prices of which are announced before sowing. The purpose is not only to allow farmers a minimum return on (part of) their investment but also procure crops for the government&#8217;s public distribution system.<\/p>\n<p>The MSP is the floor price, i.e., it is the minimum at which a crop can be bought in the market.<\/p>\n<p><strong>NDTV Archives |\u00a0<\/strong><a href=\"https:\/\/www.ndtv.com\/india-news\/farm-laws-scrapped-farm-laws-to-be-cancelled-says-pm-modi-what-are-the-three-black-laws-2617490\" target=\"_blank\" rel=\"noopener noreferrer\">Farm Laws To Be Scrapped. What Are Three &#8220;Black&#8221; Laws?<\/a><\/p>\n<p>MSPs, however, have no legal backing, meaning the government is not obliged to buy, for example, 10 per cent of a farmer&#8217;s paddy crop at the floor price. And it is this that the farmers want changed.<\/p>\n<p>The row over MSP made headlines four years ago after the second of the Modi government&#8217;s three &#8220;black&#8221; laws, which were scrapped after the farmers&#8217; 2020\/21 protest. This law &#8211; the Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Act &#8211; said crop prices would be determined by market forces &#8211; i.e., farmers would get more for in-demand crops.<\/p>\n<p>The farmers, however, felt this would abolish, by default, the MSP feature.<\/p>\n<p>The <a href=\"https:\/\/www.ndtv.com\/india-news\/pm-narendra-modi-says-misinformation-being-spread-that-farmers-wont-get-right-prices-amid-protests-over-farm-bills-2297418?pfrom=home-topscroll\" target=\"_blank\" rel=\"noopener noreferrer\">government sought, unsuccessfully, to allay these fears<\/a>.<\/p>\n<h3><strong>Farmers&#8217; Other Demands<\/strong><\/h3>\n<p>Meanwhile the farmers also want debt waivers, no hike in electricity tariffs, and withdrawal of police cases filed in the 2020\/21 protests, when they had violent clashes with security personnel.<\/p>\n<p>Finally, they also want justice for farmers killed in Uttar Pradesh&#8217;s Lakhimpur Kheri, reinstatement of the Land Acquisition Act, and compensation to the families of those who died four years ago.<\/p>\n<h3><strong>Where Are The Farmers Now?<\/strong><\/h3>\n<p>Protesting farmers are now camped around 200 km from Delhi, with multiple fortifications and barriers &#8211; from concrete blocks and barbed wire to nail strips and metal barricades &#8211; in their way.<\/p>\n<p>They are, for now, being held at the Shambhu border crossing between Punjab and Haryana.<\/p>\n<p><strong>READ |\u00a0<\/strong><a href=\"https:\/\/www.ndtv.com\/india-news\/shambhu-border-police-use-tear-gas-on-farmers-at-punjab-haryana-border-5071743\" target=\"_blank\" rel=\"noopener noreferrer\">Police Use Tear Gas On Farmers At Punjab-Haryana Border<\/a><\/p>\n<p>The protest began last week; a small crowd at Shambhu were tear gassed by Haryana police officials, who fired over two dozen shells in a warning salvo. Since then, though, the situation has been calm.<\/p>\n<p><em>NDTV is now available on WhatsApp channels. <a href=\"https:\/\/www.whatsapp.com\/channel\/0029Va4lixw7z4kcvZI9JM12\">Click on the link<\/a> to get all the latest updates from NDTV on your chat. <\/em><\/p>\n<\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.ndtv.com\/india-news\/farmers-protest-msp-proposal-ndtv-explains-centres-new-5-year-msp-proposal-what-it-means-5086166\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Delhi Farmers Protest: Farmers have been protesting the MSP issue since the 2020\/21 agitation (File). New Delhi: The deadlock between the government and protesting farmers rolled into a second week Monday, with no definite breakthrough after four rounds of talks but signs of an accord on the horizon. At a meeting late Sunday the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":421315,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[9819,491502,492010,18097,18098,491503,13402,144281],"_links":{"self":[{"href":"https:\/\/haftavasool.com\/haftavasool\/wp-json\/wp\/v2\/posts\/421314"}],"collection":[{"href":"https:\/\/haftavasool.com\/haftavasool\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/haftavasool.com\/haftavasool\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/haftavasool.com\/haftavasool\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/haftavasool.com\/haftavasool\/wp-json\/wp\/v2\/comments?post=421314"}],"version-history":[{"count":0,"href":"https:\/\/haftavasool.com\/haftavasool\/wp-json\/wp\/v2\/posts\/421314\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/haftavasool.com\/haftavasool\/wp-json\/wp\/v2\/media\/421315"}],"wp:attachment":[{"href":"https:\/\/haftavasool.com\/haftavasool\/wp-json\/wp\/v2\/media?parent=421314"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/haftavasool.com\/haftavasool\/wp-json\/wp\/v2\/categories?post=421314"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/haftavasool.com\/haftavasool\/wp-json\/wp\/v2\/tags?post=421314"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}