MSP: Taking a major step during the fourth round of talks with farmer leaders on February 18, the Modi government presented an important proposal related to the assurance of minimum support price (MSP). In contrast to the demand for a comprehensive MSP law covering 23 crops being grown by farmers, the government’s proposal focuses on a contractual agreement to purchase three pulse crops, maize and cotton at MSP for a period of five years.
What is MSP?
MSP or Minimum Support Price is the minimum price set by any government for limited agricultural products. The government buys these decided products directly from farmers if the prices in the open market are less than the cost incurred.
The system of MSP came into being in the 1960s and was supposed to provide an assurance of minimum remunerative prices to farmers.
Commerce Minister Piyush Goyal, while addressing the media after the meeting which lasted till 1:30 am, said that the government-promoted cooperative societies — NCCF (National Cooperative Consumers Federation of India) and NAFED (National Agricultural Cooperative Marketing Federation of India) — will enter into contracts with farmers for the next five years, allowing them to purchase unlimited quantities at MSP.
Union Agriculture Minister Arjun Munda and Minister of State for Home Nityanand Rai were also present during the talks. However, the proposal has surprised farmers as they were expecting a legal framework for MSP covering all crops.
The protesting farmers, represented by Sarwan Singh Pandher of Kisan Mazdoor Morcha (KMM) and Jagjit Singh Dallewal, convenor of SKM (non-political), a splinter group of Samyukt Kisan Morcha (SKM), have not committed to the government’s proposal with immediate effect.
They have taken two days to discuss with their respective forums before taking further action.
Dallewal said that they would consult experts and forum members before reaching any conclusion. On the other hand, Pandher stressed that if no decisive result is found in the next two days, the ‘Delhi Chalo’ protest will resume from February 21 because apart from MSP, farmers also have some other demands.
Haryana BKU (Chaduni) chief Gurnam Singh Chaduni specifically indicated that his group would join the protest if talks between Punjab farmer organisations and the central government fail. Meanwhile, the parent SKM group in Punjab announced massive protests day and night in front of the residences of BJP leaders for the next three days.
The ongoing struggles and unfulfilled commitments by the Central government including the ‘cost and 50%’ model for MSP, guaranteed purchase, a comprehensive loan waiver scheme and opposition to power privatisation will be discussed at the SKM’s National Coordination Committee meeting in Delhi on February 21.
On the other hand, as tension between the government and farmers accelerated, BKU Ugrahan staged a sit-in outside the residences of prominent BJP political figures in Punjab, while the internet shutdown in seven districts of Haryana has been extended till February 24 and in six districts of Punjab internet services have also been shut down.