BJP led NDA Government Betrays Farmers Yet Again: Kharif Prices Far Below C2+50%

The BJP led Central Government has announced the Minimum Support Prices for the Kharif Marketing Season 2019-20. In a situation when farmers across the country are in acute distress due to severe drought, the prices announced only add salt to injury. It has announced a meagre 3.7 per cent hike in the prices of paddy despite the fact that costs of production over the year have drastically increased. This will only mean an increase of Rs.65/Quintal. It is notable here that the CACP cost calculations are questionable and the weighted average costs are arrived at by making drastic undervaluation and are nowhere near the actual costs. For instance the projected cost for Kharif Marketing Season, 2018-19 for Paddy by the State Government of Punjab was Rs.2490/Qtl while the CACP calculation was only Rs.1174/Qtl; not even 50 per cent of the projected costs put forward by the State Agricultural Department. The C2 costs as per BJP and JD-U ruled Bihar for paddy is Rs.1605/Qtl but CACP considers it as Rs.1398/Qtl only. Odisha State projection is Rs.2344/Qtl while CACP considers it as only Rs.1713/Qtl. This is the case in most crops. Even taking the C2 costs as arrived by the CACP that is Rs.1,560/Qtl the C2+50% would come toRs.2,340/Qtl. But the MSP announced is only Rs.1,815/Quintal. It is also worth noting that Kerala procures paddy at Rs.2,650/Qtl.

In the case of Arhar/Tur the weighted average C2 costs projected for 2018-19 was Rs.4981/Qtl. This also is arrived by similarly deflating the actual costs arrived at by State Agriculture Departments. The MSP announced is way below C2+50% as that would have been at least Rs.7,471.5/Qtl as per 2018-19 projected costs. The MSP announced now is Rs.5,675/Qtl only. This also is below the C2 costs in Karnataka, which is one of the main producers of Arhar/Tur.

It is also notable that the Niti Ayog is talking of freeing farm sector from controls. This would lead to further increase in input prices. The Government is planning to shift from procurement to the deficiency payments and pushing for greater corporate investments in agriculture. AIKS had warned that the Pradhan Mantri Annadaata Aay Sanrakshan Yojana and Pradhan Mantri Kisan Samman Nidhi were tailored to shirk responsibility from public procurement and would lead to collapse of the support system. This is coming true now.

AIKS calls upon all its units to expose the farce enacted by the Narendra Modi-led BJP and rise up in protests.

Sd/-

Ashok Dhawale, President
Hannan Mollah, General Secretary