Defeat Modi Government’s Conspiracy to Dismantle Public Procurement Mechanism July 7, 2014
The Narendra Modi led NDA Government is going ahead with its plans to gradually finish off the Public Procurement Mechanism in a move which will adversely affect livelihoods of millions of farmers, seriously compromise the food security of the Nation as well as mean further increase in food grain prices for the masses. The Ministry of Consumer Affairs, Food and Public Distribution has issued a letter to States regarding change in policy of procurement for the Central Pool. This will dismantle even the present weak Public Procurement as well as the Price Support System to India’s Farmers. All India Kisan Sabha condemns this blatant move to allow profiteering by the corporate sector at the expense of Farmers as well as the hungry millions in India.
The letter titled “Declaration of Bonus by Some State Governments Over and Above MSP- Change in Policy of Procurement for Central Pool” clearly takes a position against States giving bonus over and above the Minimum Support Price (MSP) on the pretext that it “distorts the market” and “drives private buyers out of the market”. In utter violation of Federal principles the Modi Government has unilaterally declared that in case a surplus Decentralised Procurement State (DCP State) declares bonus for wheat or paddy from Kharif Marketing Season (KMS) 2014-15 and Rabi Marketing Season (RMS) 2015-16 onwards, the Central Government will limit the procurement to the Central Pool to the extent of requirement of food grains for TPDS/OWS allocations of that State and only will provide acquisition and distribution subsidy to the State accordingly. Although the Food Corporation of India (FCI) may acquire additional quantity of food grains from such State to augment stocks elsewhere it will not be mandatory for the FCI to do so. In a clear threat to the State Governments the letter goes on to warn that such State alone would be responsible for the disposal of any surplus procured over and above this and also bear all financial burden in that regard.
The letter has more draconian provisions for Non- DCP States wherein it has been “decided” that if a State announces bonus over and above MSP, the FCI will “not take part” in procurement and MSP operation in the State and the State agencies will have to mobilise resources and take care of entire procurement and MSP operations including storage of food grains procured. In such States the FCI in consultation with the Department of Food and Public Distribution will decide as to how much stock of wheat or rice it should acquire in a particular season and restrict its Central Pool procurement to that extent. The rest of the surplus stocks will have to be disposed off by the State Government “at its own risk and cost”.
This decision of the Modi Government has serious portents for the Food Security of the Nation and also for the millions of Farmers who are being threatened with the denial of production incentives and bonuses. The MSP does not reflect the actual Cost of Production and is unremunerative and primary reason for making agriculture unviable. The MSP is also calculated on the basis of All India Weighted Average Cost of Production and the States exercising the right of providing production incentives or bonuses are usually those with a higher Cost of Production than the All India Weighted Average Cost of Production. It also is often a reflection of the fact that the Commission of Agricultural Costs and Prices (CACP) cost calculations are based on dated data collected by the Directorate of Economics and Statistics (DES) which is disputed by Farmers as well as State Agricultural Departments. States like Kerala and even some BJP ruled States like Madhya Pradesh and Chhattisgarh as well as others have been providing bonuses to wheat and paddy farmers factoring in these issues. Farmers especially in such States will be forced to quit agriculture and these lands will be converted for other non-agricultural purposes.
The hypocrisy of the Modi Government is all the more exposed when one considers the fact that all through the election campaign and after formation of the Government Modi and the BJP have been claiming that the MSP will be at least 50 percent over and above the Cost of Production. It all the more acquires dangerous proportions when it comes in the background of the Kharif sowing drastically going down from around 200 lakh hectares last year to merely around 130 lakh hectares this season. The impending threat of adverse climatic conditions under impact of El Nino effect has also not been considered by the Government. The Government instead of coming up with Confidence Building Measures to boost agricultural production in a drought year has come up with such an anti-Farmer policy for aiding corporate profiteering.
The AIKS has consistently opposed proposals for dismantling the Procurement Mechanism and the MSP Operations in meetings with the Agriculture Ministry as well as the CACP and had stated our position even in the latest meeting of the CACP on 4th June, 2014. The Government has gone ahead with this move by disregarding the interests of millions of Farmers. We warn the Modi Government of consistent organised struggles against this retrograde move. Kisan Sabha calls upon all democratic minded individuals and Organisations of the peasantry as well as State Governments to unite and stop this onslaught on Agriculture.
Sd/-
Amra Ram, President
Hannan Mollah, General Secretary
