Why Are Farmers Protesting the Budget 2018? Medha Patkar Explains
Why are farmers angry with the Union Budget 2018? Medha Patkar explains.
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The Narendra Modi government’s final full budget before the Lok Sabha elections has not gone down well with farmers.
An estimated 191 farmer bodies from around the country have called a week-long strike to express their displeasure with the Union Budget 2018. Copies of the budget will be burned during the 'Kisan Sangharsh Mukti Saptah’ – scheduled to be held at various locations across the country between 12-19 February – the farmers' bodies had announced at a press conference in Delhi.
“The budget favours corporates," activist Medha Patkar told The Quint. “Crop insurance has been exposed across the country. IT companies made a profit of Rs 24,000 crore from this, she alleged, adding that farmers paid lakhs of rupees in the name of insurance but did not receive any compensation from the government when their crops were damaged,” she says.
“Despite several attempts by farmers to waive farm loans and several suicides that have occurred as a result of mounting farm loans, the issue finds no mention in the Budget,” she says.
“Minimum Support Price = Manipulated Support Price”
“The MSP formula has been manipulated,” Patkar alleges, adding, “They should call it Manipulated Support Price instead... farmers deserve Maximum Support Price or Optimum Support Price, but the government has ignored that”.
“The new MSP should be calculated on the basis of comprehensive price,” the activist says. Alleging that the government made false promises to farmers in a bid to win votes, she says: “Their previous election manifesto was a lie, and their manifesto for the next elections too will be a lie”.
When asked if the government referred to the Swaminathan Commission's report, she said: “"There are two models for calculating production cost. One, where the cost of natural resources is added... The government claims that the farmers are receiving 4,000 times the cost. That is how MSP is manipulated”.,
What is A-2, A-2+FL & C-2?
A2 refers to actual paid out cost, A2+FL is actual paid out cost plus the imputed value of family labour, while C2 is the comprehensive cost including imputed rent and interest on owned land and capital. “Land and Labour are important for cost of production. Excluding them means the cost dips drastically, she says.
Patkar also spoke about the Bhavantar scheme in Madhya Pradesh. “It is a scam,” she alleged. “The cost of a quintal of cotton is Rs 4,350, but farmers get Rs 1500-3000. The government gives the difference of Rs 1,000. The traders buy it for cheaper thinking that the government will pay the difference”. Traders are stuck due to GST and demonetisation, she explains, and they resort to tricking the farmers. “This scheme loots traders and farmers,” she alleged.
(With PTI inputs)
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