September 12, 2021

MSP Reduced in Real Terms

BJP’s Claim of “Highest Ever” Rise in MSP a Blatant Lie

THE All India Kisan Sabha, in a statement issued on September 8, has condemned the callous manner in which the Narendra Modi led BJP government has announced the minimum support prices (MSP) for Rabi Marketing Season, 2022-23 without following the C2+50 per cent formula or even taking into account increased costs of inputs and inflation. As usual the government and its propaganda machinery are claiming it to be the “highest ever”. In reality the increase in wheat prices is merely 2.03 per cent from Rs 1975/Qtl to Rs 2015/Qtl, the lowest increase in 12 years. The MSPs of other crops have meagre nominal increase ranging from 2.14 per cent to 8.60 per cent while in real terms in all crops the farmers will suffer huge losses.

At 2021-22 costs if MSP was calculated as per C2+50 per cent it should have been Rs 2195.5/Qtl for wheat. A full year after, with increased costs of cultivation, the MSP for marketing season 2022-23 is still Rs 180/Qtl below this figure. Similarly for Barley C2+50 per cent last year was Rs 2106/Qtl while MSP announced this year is Rs 1635/Qtl or Rs 471/Qtl lesser. MSP of gram for 2022-23 is Rs 5230/Qtl while the C2+50 per cent for 2021-22 was Rs 6018/Qtl, ie, Rs 788/Qtl lesser; for lentil (masur) MSP for 2022-23 is Rs 5,500/Qtl while C2+50 per cent for 2021-22 was Rs 6306/Qtl or Rs 806/Qtl lesser; MSP for rapeseed and mustard for 2022-23 is Rs 5050/Qtl in comparison to C2+50 per cent of Rs 5205/Qtl for 2021-22 it is lesser by Rs155/Qtl; for safflower MSP announced is Rs 5441/Qtl while last year’s C2+50 per cent was Rs 7362/Qtl or Rs 1921/Qtl lesser. The losses to farmers will be much higher as per latest costs of cultivation. The CACP has not put up the price policy report for rabi marketing season, 2022-23 yet on its website.

Only a small section of farmers get to sell their produce at MSP as there is no guaranteed procurement. The last year’s report on price policy also shows that in 2020-21 even as this is the case there has been a drastic fall in number of beneficiaries who get even this unremunerative MSP, especially for pulses and oilseeds. In the absence of guaranteed procurement even this MSP is not ensured for farmers. This is the reason why farmers are demanding MSP at C2+50 per cent as a legal right.

AIKS demands that the BJP government come with a revised announcement in line with the farmers’ demand for MSP as per C2+50 per cent formula. AIKS calls upon all its units to rise in protest and expose the farce enacted by the BJP government.