FARMERS PROTESTS
- A legal guarantee of minimum support price (MSP) for all crops, as per Swaminathan panel formula
- A full debt waiver for farmers
- A monthly pension of Rs 10,000 for all farmers above 60 years
- A doubling of farmers' income
- Loan waivers
- The implementation of the Swaminathan Commission's formula
- Withdrawal of cases against farmers during the 2020 protest
- At least 50% profit over the overall cost of production
- Legislation to guarantee minimum prices
- Penalization for those who sell fake seeds, pesticides, and fertilizers
- Action against a federal minister whose son was arrested during the 2021 protest
- India's exit from WTO and free-trade agreements
- The central government has consistently stated that it is not feasible to declare a guaranteed Minimum Support Price (MSP). According to Union Agriculture Minister Arjun Munda, any legislation concerning a guaranteed MSP would require a comprehensive examination of all perspectives.
- The current protests among farmers bring back memories of the year-long agitation that took place in 2020-21, during which numerous farmers staged protests at various locations around the borders of Delhi.
- During this period, farmers were advocating for the repeal of three agricultural laws enacted by the central government, which they argued were detrimental to the interests of the agricultural community.
- These laws included the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, the Essential Commodities (Amendment) Act, and the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act. In 2021, the government rolled back these laws. One of the primary demands during this agitation was the assurance of crop purchases at MSP.
- Additional demands encompass a complete waiver of loans for farmers and farm labor, a monthly pension for farmers and farm laborers at the age of 58, withdrawal of the Electricity Amendment Bill, 2020, reintroduction of the Land Acquisition Act, 2013 to ensure farmers' consent and compensation at four times the collector rate, and the provision of 200 days of employment annually at a daily wage of ₹700 under the Mahatma Gandhi National Rural Employment Guarantee Act, among others
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What are the primary demands of Farmers?
The primary issue raised by the farmers engaged in protests is the absence of legislation on Minimum Support Price (MSP), and they express frustration that the Union government is neglecting their other demands despite repeated appeals. MSP is the guaranteed price at which the government commits, in theory, to purchase agricultural produce from farmers. This assurance applies to 22 crops, predominantly grains, pulses, oilseeds, paddy, and copra. Studies indicate that only a limited proportion of farmers in the country actually benefits from MSPs. Farmers allege that while the government pledged to address their concerns in the earlier protests, it has been sluggish in fulfilling its commitments
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- Minimum Support Price (MSP) is a price at which the government of a country guarantees to purchase the agricultural produce from farmers, ensuring that they receive a remunerative and stable income for their crops. MSP is typically set by the government to provide a safety net for farmers, especially during times of market fluctuations and price volatility.
- The MSP is determined based on various factors, including the cost of production, market prices, demand and supply conditions, and the overall economic and agricultural policies of the government. It serves as a form of price assurance to encourage farmers to cultivate certain crops, even in the face of market uncertainties.
- In many countries, including India, the government announces MSPs for various crops each year. The objective is to protect farmers from price fluctuations and market risks, ensuring a minimum level of income for their produce. The government often procures crops at MSP through state agencies or designated procurement centers.
- While MSP is intended to benefit farmers, there can be challenges and criticisms associated with its implementation. Critics argue that MSPs may distort market dynamics, lead to overproduction of certain crops, and may not effectively reach all farmers, particularly those in remote or marginalized areas.
- In India, MSP is a crucial aspect of agricultural policies, and discussions around it have been central to recent farmer protests, with demands for legal guarantees and broader coverage of crops under MSP
- Opposition arose against three proposed laws that aimed to relax regulations surrounding the sale, pricing, and storage of agricultural produce, regulations that have safeguarded farmers from the open market for many years.
- Farm unions contended that these laws would expose farmers to the influence of large corporations and jeopardize their livelihoods. Despite months of asserting that the reforms would be advantageous for farmers, Prime Minister Modi declared the repeal of the laws on November 19, 2021. Shortly afterward, the parliament ratified the bill to annul the reforms.
- While hailed as a triumph for farmers and a notable demonstration of how mass protests can effectively challenge the government, the farmers did not immediately disband from the protest sites. They persisted until the government issued a formal letter, acknowledging many of their additional demands.
- Additionally, the government committed to providing compensation to the families of farmers who lost their lives during the protests. In response to the demand for a minimum support price, the government pledged to establish a committee comprising representatives from federal and state governments, agricultural scientists, and farmer groups
The farmers' march has brought back memories of the chaos which prevailed in India's capital during their first protest - bringing life around Delhi's borders to a standstill for months on end.
Mr Modi's government has so far held two new rounds of talks with the farm leaders. However, the farmers called the talks "delaying tactics" and refused to call off their protest.
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For Prelims: Economic and Social Development For Mains: General Studies III: Issues related to direct and indirect farm subsidies and minimum support prices |
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Previous Year Questions 1.Which of the following factors/policies were affecting the price of rice in India in the recent past? (UPSC CSE, 2020) Answer (d) Answer (c) Answer (a) |
Source: The Hindu
