Amid hide and seek by the monsoon in Northern India, the cabinet on 4th of July has decided to fulfil its commitment for the hike in MSP’s by 50 per cent on Kharif Crops. The major crops covered for instance are Paddy Rs 1750 per quintal, Maize Rs 1700 per quintal, Cotton Rs 5150 per quintal, Sunflower seeds Rs 5388 per quintal, Soyabean Rs 3399 per quintal, Sesame Rs 6249 per quintal and with a focus on the crops like Ragi and Bajra are also given advantage of higher MSP’s, according to the Union Home Minister, Rajnath Singh.
Replying to the questions from media, Union Home Minister said that Prime Minister Modi understands the pain of farmers’ in India and his cabinet is committed to providing foolproof procurement of commodities under MSP via different government agencies.
The Home Minister also said that, "I am a farmer, the Minister of Agriculture is a farmer, the Minister of Food Processing is a farmer and even the Minister of IT, Electronics, law and justice knows farming. Most of the cabinet ministers are aware of the ground realities of farmers and that is why the cabinet has kept even the most underestimated aspect of farming under their scanner."
Rajnath informed that the cabinet has included the cost of family labour involved in farming and it has taken care of the rate of leased land involved in farming. Replying to a question, the minister said that, "Government has not adopted cost C2+FL but it has opted for A2+FL which is the cost imputes family labour, hired machinery and leased land."
Cabinet has also insured that it has studied several microeconomic figures before deciding these MSP’s and its adverse effect may not reflect on inflation. Though the timing of government’s decision can be questioned as it is just one year to go for India’s biggest political battle where farmers’ play a huge role. Meanwhile, answering the questions of BW Businessworld, Naresh Sirohi, Vice President of BJP Kisan Morcha christened it as a part of the party manifesto. Refuting the charges of hike in MSP as a shortcut to doubling farmers’ income (DFI), he said, ‘It is just one landmark to the larger vision of farmer-friendly Nation’. Sirohi termed it as a genuine effort by the government, he gave an example of the rise in MSP’s of Bajra and Ragi as a part of PM’s vision is interlinking Malnutrition free India with DFI and larger part of farmer’s welfare.
This may create another row of controversy as opposition has blamed the government of avoiding C2+FL formula, opposition sources have even called it a burden for them sighting it an opportunist decision while Modi government may not regain the power in upcoming elections and the next government will be forced to bear the burden of this Rs 15, 000 crore alleged burden on the budget. Experts on the condition of anonymity, though term it as a calculated masterstroke by the government which is about to face general election next year.