The fourth round of talks between leaders of the protesting farmers and the Union government in Chandigarh concluded late Sunday, a little after midnight.
The protesting farmers have sought two days to discuss the government’s proposal in their forums, while a decision on their other key demands remains pending.
“Cooperative societies like the NCCF and Nafed will contract with farmers who grow tur dal, urad dal, masoor dal or maize to buy their crop at MSP for the next five years,” Union food and public distribution minister Piyush Goyal told reporters after meeting with the farmers.
“Cereals like arhar or tur, urad, if brought under MSP, would lead to a reduction in imports, recover the depleted water level of Punjab, as well as provide economic pulses for consumers,” he said.
MSP refers to a price fixed by the government to protect farmers from any steep fall in crop prices. This guarantee acts as a safety net and prevents losses for farmers.
If this proposal goes through, the National Cooperative Consumers’ Federation of India Ltd (NCCF) and the National Agricultural Cooperative Marketing Federation of India (Nafed) will sign contracts with farmers for the next five years for procuring the crops, with no limit on the buying quantity.
The farmers also demanded that maize and cotton be covered under MSP, Goyal said, adding that the Cotton Corporation of India would procure the entire cotton crop from farmers on MSP.
Punjab chief minister Bhagwant Mann also joined the talks, which began at 8.15 pm on Sunday and ended at around 1 am on Monday.
Thousands of farmers from more than 200 farm unions joined the Samyukta Kisan Morcha (SKM) and the Punjab Kisan Mazdoor Morcha (KMM) in their ‘Delhi Chalo’ march.
The farmers had started their protest on 13 February to press for several demands, including a state-guaranteed minimum price for 23 crops, a loan waiver, social security benefits such as pensions, and a revamp of the crop insurance scheme.
The farmers are also seeking higher duties on imported agricultural produce, as duty-free imports lead to lower farmgate prices.
“Guaranteeing MSP for all crops can lead to farmers moving to crops other than paddy and wheat, which see the maximum procurement,” said Pushan Sharma, director of research, CRISIL Market Intelligence & Analytics.
“Another critical aspect to consider is that procurement is concentrated in only a few states such as Punjab, Haryana, Madhya Pradesh, Chhattisgarh, Telangana and Uttar Pradesh, so farmers in other states don’t get the benefit of MSP,” added Sharma. “Guaranteeing an MSP across crops will spread the benefit across the country. It will support farmers’ incomes and boost consumption demand.”
While MSP has been announced for 23 crops, the government ends up meaningfully procuring only two crops—paddy and wheat. Therefore, over 60% of field crop production in India comes from only these two crops, excluding sugarcane, as farmers tend to opt for these given the MSP support and lack of risk appetite for other crops.
The latest round of farmers’ protest follows muted farm earnings over the past year, during which the government placed export curbs on wheat, rice, sugar and onion, depressing local prices. Farm incomes were hit also because of repeated climate shocks such as heatwaves and uneven rains.
On the fifth day of their march on Sunday, the farmers stayed put at the Shambhu and Khanauri points of the Punjab-Haryana border.
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Published: 19 Feb 2024, 09:53 AM IST
Ananya Das is your guide to the latest trends, viral sensations, and internet phenomena. Based on a keen understanding of digital culture, Sophie navigates the ever-evolving landscape of trending topics. With an insightful and engaging approach, she explores what’s buzzing across social media platforms, ensuring readers stay in the loop with the most talked-about and shareable content online.
