With 2019 in mind, Centre doles out MSP bonanza to farmers

millets-reuters [File] Representational image | Reuters

The BJP-led NDA government has sounded poll bugle on Wednesday by announcing that it has fulfilled its election promise to farmers by increasing the minimum support price of kharif crops by as much as 150 per cent. The Union budget had promised farmers an MSP that will be 1.5 times the production cost of kharif crops. The MSP is a guaranteed price for the produce from the state to ensure that the farmers are not hit by sudden fall in agricultural produce prices, bringing distress to the sector.

Announcing the decision after the cabinet meeting, Home Minister Rajnath Singh said the NDA government has taken a historic decision to instil confidence among farmers who are the country's biggest “producer, consumer and customer,” but have not been given their due since Independence. "The sad part is that despite the farmers being the country's biggest producer, consumer and customer, they have not got the correct price for their produce till now. It is only Prime Minister Narendra Modi who has understood and felt their plight and taken the historic decision to give them 150 per cent of the input cost.''

The home minister also reiterated the commitment made by his government of doubling the income of farmers by 2022. Singh said the decision taken is a well considered one and will not impact food inflation and added that the government is confident of controlling the rising consumer price. "We have not taken this decision in a hurry. It is a well considered and well-thought-out decision. The farmers' income will naturally go up and it will have an impact on the wider economy. The import prices will also come down. It is a big achievement,'' he said.

The home minister's announcement comes days after he told THE WEEK in an exclusive interview that his government was working overtime to address the distress in the agriculture sector. "The prime minister is committed to doubling farmers' income by 2022. This kind of commitment is seen for the first time. There are some items for which we are increasing the minimum support price to 50 per cent of the agriculture input cost. Our target is to double the farmers' income. We have also taken a number of steps to reduce input costs,'' he had said in the interview.

The announcement of the new MSP includes 14 kharif (summer sown) crops for 2018-19. Singh cited the data of the Commission for Agricultural Costs and Prices where the input cost of paddy is Rs 1,166 per quintal for which the MSP has been set at Rs 1,750 per quintal giving it a 50 per cent hike. The MSP for maize has been fixed at Rs 1,700 per quintal, cotton at Rs 5,150 per quintal, soyabean at Rs 3,399 per quintal, sunflower seeds at 5,388 per quintal and mole at Rs 6,249 per quintal.

A boost has been given to ‘millets’ (ragi, bajra and jowar besides the pulses and oilseeds. Ragi has got over 52 per cent hike, jowar 42 per cent and bajra 96.97 per cent, which is the maximum. The CACP had said the input cost for bajra was Rs 990 per quintal and the MSP has now been fixed at Rs 1,950 per quintal. The focus on millets gains significance in the backdrop of millets gaining entry into the public distribution system. “In Independent India, the MSP has never been hiked so much. The last time it was done was during the Vajpayee government, but that was also not so much. It is the Modi government which has taken the historic decision to take such a bold step,’’ said Singh.

The home minister said he is a farmer himself, hailing from an agricultural family and not even he could have imagined that any government could take such a complete pro-farmer decision. “This move is going to instil confidence among farmers and the disappointment and distress that was seen in the farmers has been taken care of.’’