THE Samyukta Kisan Morcha (SKM) has strongly criticised the union budget for its obstinate direction of corporatisation of agriculture at the cost of farmers and workers, and usurping the rights of state governments thus violating the basic concept of the federal character of the Constitution of India.

The budget prepared under the duress of international finance capital has declared a tax exemption of 5 per cent for MNC’s and is not ready to tax the corporates and super rich, while 67 per cent of the GST collected as indirect tax is from 50 per cent of the poor population. There is no tax increase on corporate companies and no wealth tax and inheritance tax, thus clearly revealing its anti-farmer, anti-worker class bias. This is not acceptable to the farmers of the country.

The budget has neglected the long-pending genuine demands of the farmers for MSP@C2+50 per cent with guaranteed procurement. The finance minister said in the budget speech ‘for annadata, the government had announced higher minimum support price a month ago for all major crops, delivering on the promise of at least a 50 per cent margin over costs’ which is untrue. The promise was @C2+50 per cent and the current MSP is @A2+FL+50 per cent. SKM demands the finance minister to clear this fact to the people through a white paper on MSP to uphold the transparency and propriety in governance. 

Even though the RBI has transferred Rs 2,10,874 crore as surplus to the union government for the accounting year 2023-24, the budget has cruelly neglected the long-pending demand of comprehensive loan waiver to farmers and workers, although as per official records 31 farmers are committing suicide daily in India. The union government had given Rs 14.46 lakh crore debt waivers to corporate houses during the last ten years and is currently processing another Rs 10.2 lakh crore through Insolvency and Bankruptcy Code.

Out of the Rs 48.25 lakh crore estimate of the union budget 2024-25 only Rs 1,51,851 crore or mere 3.15 per cent is the share of agriculture and allied sectors. The share of this sector has declined during the past budgets from 5.44 per cent in the year 2019-20, 5.08 per cent in 2020-21, 4.26 per cent in 2021-22 and 3.23 per cent in 2022-23. The budget did not repeal GST on farm inputs including seeds, fertilisers, machineries, spare parts and tractors thus helping the farmers to reduce the cost of production. This is the attitude of the Modi government towards this important sector that sustains 45.76 per cent of the work force and 58  per cent of the population. SKM has demanded a separate budget for agriculture and rural development with adequate share of the union budget.

The budget ignored one of the most important demands of replacing the failed PMFBY and NDRF with an insurance scheme in the public sector and also provide interest free credit to farmers to help them during crop failures and natural calamities which are increasing due to global warming.

The decision of taking one crore landed farmers out of 9.3 crore to natural farming is detrimental to increasing agricultural production and will create a food crisis. The cut in fertiliser subsidy has raised the cost of production and it will destroy the food security of the country, paving the way for immense social calamity in future as experienced by countries like Sri Lanka.

The announcements of digital public infrastructure (DPI) in agriculture to register land and crops and the National Cooperation Policy are aimed at encroaching on the rights of the state governments since agriculture, land and cooperation are state subjects as per the Constitution of India. SKM stands for upholding the constitutional provision of cooperation as a state subject and strongly demands the abolishment of the union ministry of cooperation formed in 2019.

The long-term objective of the budget is promoting contract framing under the direct control of the corporates and MNCs. The ICAR signed Memorandum of Agreements with MNC’s including Bayer and Syngenta working in the Agribusiness and Research and Development sectors and the Finance Minister declaring to provide fund to the private sector for promotion of R&D are part of the efforts to implement the black Farm Acts through the back door.

SKM had demanded that the union government amend the GST Act and reinstate the right of the state governments to taxation, thus upholding the principle of strong states in a strong union of India. The negation of the right of the states for taxation and then practicing discrimination in fixing the share of allocation to the states has become a serious matter of political concern. The BJP and NDA are pitching the fund-starved states against each other and are appeasing certain states with irrational allocations to sustain their power. This is ruinous and dangerous and in the long run will injure national unity and cohesiveness of sustaining a federal structure respecting the diversity of various nationalities that constitute India.  

SKM demands all state governments and all political parties take firm and clear positions on these serious issues and rally against the Modi government demanding change in the policy of centralisation of power, ensure taxation rights of states, thus protecting the interests of the people and the country.  

The budget did not reflect the demands like minimum wage of Rs 26,000 per month for workers that can support 90 per cent of the workforce in the unorganised sector, recruitment in the existing 30 lakh plus vacancies in the public sector as well as government sector, and wage hike to Rs 600 per day and minimum work of 200 days under MNREGA. In fact, instead of doubling the allocation for MNREGA, it has been reduced. The demand for linking MNREGA with watershed planning and agricultural development is neglected. The wrong policy on MSP and MNREGA reveals that the Modi government has no sincerity to revive agriculture and small production to end farmers’ suicides, distress migration and the acute crisis of unemployment.    

SKM strongly condemned the silence of the finance minister in her budget speech about the serious issue of loss of crop and life due to the wild life menace. The crop wise demands such as clearing arrears of sugarcane farmers, declaring price stabilisation fund and support price of Rs 250 per kilo for rubber farmers, 100 per cent import duty on apple, market protection for onion, potato and vegetable farmers, extending MNREGA towards the dairy and animal husbandry sector, market price for cattle, and end stray cattle menace to crops and human life etc., are also are not addressed in the budget.

SKM strongly condemns the negative attitude of the budget on education, health, employment and price control. The government is not ready to repeal the four labour codes and reintroduce the old pension scheme. The trumpeted schemes of skill development and one-month salary in the private sector are inadequate and only reflect the abdication of the union government from addressing the acute unemployment issue.

SKM appeals to the farmers across India to conduct widespread campaigns and protests across India in the villages and burn the copies of this anti-people and pro-corporate budget. The details of the mode and date of campaign and protest will be decided by the respective state coordination committees of the SKM.