The Centre's decision to increase the Minimum Support Prices (MSP) for Kharif crops, including paddy and ragi, has been hailed by its ministers as historic. The move comes less than a year before the next general elections.
But will this decision offer respite to farmers?
Ajay Vir Jakhar, Chairman, Bharat Krishak Samaj, believes that it is a significant hike when compared to the previous years, but does not call it “historic”.
“It’s a significant hike when compared to the hike in the last few years, but this isn't something the farmers were expecting," Jakhar told BloombergQuint. He said that the decision cannot be a game changer as far as the political landscape of the country is concerned.
"Less than 10 percent of the farmers benefit from MSP hike. So it is definitely not a game-changer announcement when your policy is not impacting even 10 percent of farmers in the country,” Jakhar said.
The decision to raise the minimum support prices for Kharif crops, including paddy and ragi, taken by the Cabinet Committee on Economic Affairs headed by Prime Minister Narendra Modi, comes less than a year before the next general elections.
The MSP for common variety paddy, the most important Kharif crop, will be raised by Rs 200 over last year’s Rs 1,550 per quintal. The previous highest hike in paddy MSP was Rs 170 per quintal in the 2012-13 crop year. In the last four years, the NDA government has raised the paddy MSP by Rs 50-80 per quintal.
Jakhar said that the biggest challenge before the government now is to procure crops at these prices.
If the government fails to procure these crops, it will go for a toss.Ajay Vir Jakhar, Chairman, Bharat Krishak Samaj
When asked about the 15,000-crore rupee toll that the MSP is going to take on the exchequer, Jakhar said that if the government can offer 100,000 crore to its employees as part of the 7th Pay Commission, this MSP amount is “peanuts” for this government. “It's too late for this government to extract political mileage out of it, though,” he added.
"It’s a grand mess that the BJP has created for itself, and it is advisable for the BJP to have a commission only for farmers," Jakhar said.
(With inputs from PTI.)
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