MSP must go and Punjab Farmers must step up
Need of the hour is for Punjab’s farmer to move from demanding MSP to producing fruits veggies and other cereals beyond rice and wheat and the Government must help with the transition. I am more convinced now that Punjabs farmers are wrong in their protest and its about getting assistance from the tax payer money. The Govt can find a way to limit Ambani and Adani by putting a cap on how much a single corporate group can buy but this is an agricultural reform that must be done. Even if farmers protest for 6 months. Govt should not yield. LocalCircles pls see if you can conduct a survey on this.
Also suggest everyone read this below piece from Indian Express to understand the issue.
Punjab’s farmers have been agitating over farm laws, braving cold nights on Delhi borders. They fear that these new laws will hit their incomes adversely. There is nothing wrong in that — every citizen not only wants to protect what s/he is earning but aspires to earn more on a sustainable basis. How do we do that is the moot question, beyond the current impasse. So far talks have remained inconclusive. Hoping that the protests remain peaceful, and a solution is found amicably, let us focus on Punjab farmers’ incomes — an issue that will stay relevant even after the protests are over.
Punjab’s stellar role in ushering the Green Revolution in the country in the late 1960s through the mid-1980s is well-known. India was desperately short of grains in 1965, and heavily dependent on PL 480 imports from the US to the tune of almost 10 million metric tonnes (MMT) against rupee payments, as the country did not have enough foreign exchange to buy wheat at global markets. The entire foreign exchange reserves of the country at the time could not help it purchase more than 7 MMT of grains. It is against this backdrop that the minimum support price (MSP) system was devised in 1965.
The situation today is vastly different. Today, the Food Corporation of India (FCI) is saddled with huge stocks of grains — it touched 97 MMT in June this year against a buffer stock norm of 41.2 MMT. The economic cost of that excess grain, beyond the buffer stock norm, was more than Rs 1,80,000 crore, a dead capital locked in without much purpose. That’s the situation of the current grain management system based on MSP and open ended procurement.
On the foreign exchange front, India has more than $575 billion — way more than comfort levels. When situations change, societies too need to change in ways that can lead to higher levels of development, else they stagnate and remain stuck in a low-level equilibrium trap. Schumpeter’s process of “creative destruction” of the old and inefficient is a fundamental law behind the development of countries around the world. India is no exception.
It is also worth noting that in 1966, when Haryana was carved out of it and a part of its territory was transferred to Himachal, Punjab had the highest per capita income. It remained a frontrunner in that respect till almost the early 2000s. But, thereafter, Punjab started sliding down very fast in the overall ranking of major states of India — if smaller states are included in the ranking, Punjab’s position fell to 13th in 2018-19. There are several reasons behind this deterioration, ranging from lack of industrialisation to not catching up even with respect to the modern services sector like IT, financial services. But I focus here on agriculture and suggest how Punjab can regain its top position.
Punjab’s agriculture is blessed with almost 99 per cent irrigation against an all-India average of little less than 50 per cent — Maharashtra’s irrigation cover, in fact, is just 20 per cent. The average landholding in Punjab is 3.62 hectare (ha) as against an all-India average of 1.08 ha — in Bihar, this figure is just 0.4 ha. Punjab’s fertiliser consumption per ha is about 212 kg vis-à-vis an all-India level of 135 kg/ha. No wonder the productivity levels of wheat and rice in Punjab stand at 5 tonnes/ha and 4 tonnes/ha respectively, against an all-India average of 3.5t/ha and 2.6t/ha.
Neither government nor protesting farmers recognise the challenge of depleting natural resources and climate crisis
In Punjab, the total farm families are just 1.09 million, a fraction of the all-India total of 146.45 million. The subsidy provision to Punjab farmers through free power by the state government (2020-21 budget) amounts to Rs 8,275 crore. The fertiliser subsidy —through the central government — to Punjab was about Rs 5,000 crore in 2019-20. The overall subsidy, from just power and fertilisers, therefore, would amount to roughly Rs 13,275 crores. That means each farm household in Punjab got a subsidy of about Rs 1.22 lakh in 2019-20. This is the highest subsidy for a farm household in India. Let’s not forget that the average income of the Punjab farm household is the highest in India — in fact, almost two-and-a-half times that of an average farm household in the country.
But to assess the real contribution of farmers/states to agriculture and incomes, the metric is the agri-GDP per ha of gross cropped area of the state in question. This is an important catch-all indicator, as it captures the impact of productivity, diversification, prices of outputs and inputs and subsidies. On that indicator, unfortunately, Punjab has the 11th rank amongst major agri-states.
States in south India like Andhra Pradesh, Tamil Nadu and Kerala have a much more diversified crop pattern tending towards high-value crops/livestock — poultry, dairy, fruits, vegetables, spices, fisheries. Even West Bengal and Himachal Pradesh score over Punjab in this respect. The writing on the wall is clear: If Punjab farmers want to increase their incomes significantly, double or even triple, they need to gradually move away from MSP-based wheat and rice to high-value crops and livestock, the demand for which is increasing at three to five times that of cereals.
Punjab needs a package to diversify its agriculture — say a Rs 10,000 crore package spread over five years. The Centre and the state can pitch in, on a 60:40 ratio. That will be a win-win situation for all. Once farmers diversify their farm output and double their incomes, they will not be stuck in the MSP trap. Can the Centre and the Punjab government join hands to find a sustainable solution to farmers’ incomes and also save depleting water, soil, and air? Only then can they make Punjab great again. more
Also suggest everyone read this below piece from Indian Express to understand the issue.
Punjab’s farmers have been agitating over farm laws, braving cold nights on Delhi borders. They fear that these new laws will hit their incomes adversely. There is nothing wrong in that — every citizen not only wants to protect what s/he is earning but aspires to earn more on a sustainable basis. How do we do that is the moot question, beyond the current impasse. So far talks have remained inconclusive. Hoping that the protests remain peaceful, and a solution is found amicably, let us focus on Punjab farmers’ incomes — an issue that will stay relevant even after the protests are over.
Punjab’s stellar role in ushering the Green Revolution in the country in the late 1960s through the mid-1980s is well-known. India was desperately short of grains in 1965, and heavily dependent on PL 480 imports from the US to the tune of almost 10 million metric tonnes (MMT) against rupee payments, as the country did not have enough foreign exchange to buy wheat at global markets. The entire foreign exchange reserves of the country at the time could not help it purchase more than 7 MMT of grains. It is against this backdrop that the minimum support price (MSP) system was devised in 1965.
The situation today is vastly different. Today, the Food Corporation of India (FCI) is saddled with huge stocks of grains — it touched 97 MMT in June this year against a buffer stock norm of 41.2 MMT. The economic cost of that excess grain, beyond the buffer stock norm, was more than Rs 1,80,000 crore, a dead capital locked in without much purpose. That’s the situation of the current grain management system based on MSP and open ended procurement.
On the foreign exchange front, India has more than $575 billion — way more than comfort levels. When situations change, societies too need to change in ways that can lead to higher levels of development, else they stagnate and remain stuck in a low-level equilibrium trap. Schumpeter’s process of “creative destruction” of the old and inefficient is a fundamental law behind the development of countries around the world. India is no exception.
It is also worth noting that in 1966, when Haryana was carved out of it and a part of its territory was transferred to Himachal, Punjab had the highest per capita income. It remained a frontrunner in that respect till almost the early 2000s. But, thereafter, Punjab started sliding down very fast in the overall ranking of major states of India — if smaller states are included in the ranking, Punjab’s position fell to 13th in 2018-19. There are several reasons behind this deterioration, ranging from lack of industrialisation to not catching up even with respect to the modern services sector like IT, financial services. But I focus here on agriculture and suggest how Punjab can regain its top position.
Punjab’s agriculture is blessed with almost 99 per cent irrigation against an all-India average of little less than 50 per cent — Maharashtra’s irrigation cover, in fact, is just 20 per cent. The average landholding in Punjab is 3.62 hectare (ha) as against an all-India average of 1.08 ha — in Bihar, this figure is just 0.4 ha. Punjab’s fertiliser consumption per ha is about 212 kg vis-à-vis an all-India level of 135 kg/ha. No wonder the productivity levels of wheat and rice in Punjab stand at 5 tonnes/ha and 4 tonnes/ha respectively, against an all-India average of 3.5t/ha and 2.6t/ha.
Neither government nor protesting farmers recognise the challenge of depleting natural resources and climate crisis
In Punjab, the total farm families are just 1.09 million, a fraction of the all-India total of 146.45 million. The subsidy provision to Punjab farmers through free power by the state government (2020-21 budget) amounts to Rs 8,275 crore. The fertiliser subsidy —through the central government — to Punjab was about Rs 5,000 crore in 2019-20. The overall subsidy, from just power and fertilisers, therefore, would amount to roughly Rs 13,275 crores. That means each farm household in Punjab got a subsidy of about Rs 1.22 lakh in 2019-20. This is the highest subsidy for a farm household in India. Let’s not forget that the average income of the Punjab farm household is the highest in India — in fact, almost two-and-a-half times that of an average farm household in the country.
But to assess the real contribution of farmers/states to agriculture and incomes, the metric is the agri-GDP per ha of gross cropped area of the state in question. This is an important catch-all indicator, as it captures the impact of productivity, diversification, prices of outputs and inputs and subsidies. On that indicator, unfortunately, Punjab has the 11th rank amongst major agri-states.
States in south India like Andhra Pradesh, Tamil Nadu and Kerala have a much more diversified crop pattern tending towards high-value crops/livestock — poultry, dairy, fruits, vegetables, spices, fisheries. Even West Bengal and Himachal Pradesh score over Punjab in this respect. The writing on the wall is clear: If Punjab farmers want to increase their incomes significantly, double or even triple, they need to gradually move away from MSP-based wheat and rice to high-value crops and livestock, the demand for which is increasing at three to five times that of cereals.
Punjab needs a package to diversify its agriculture — say a Rs 10,000 crore package spread over five years. The Centre and the state can pitch in, on a 60:40 ratio. That will be a win-win situation for all. Once farmers diversify their farm output and double their incomes, they will not be stuck in the MSP trap. Can the Centre and the Punjab government join hands to find a sustainable solution to farmers’ incomes and also save depleting water, soil, and air? Only then can they make Punjab great again. more
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I am inclined to agree with Shri Kewal Bhatnagar's Post entirely. If to implement the Agr. farm law is a choice of State Govt. then Farmers are presenting their case in the wrong Court. Central Govt. should ask them to represent their grievance to State administration. Also after making clear that old laws are not repealed there should have been no grievance. But as the actual issue is not of the farmers but that of Khalistan and middlemen (all belonging to opposition parties) they want to embarrass Central Govt. by forcing back tracking of the bill passed in Parliament. RYK. more
Dec 21
Helpful info by Harsimranji. Now it seems clear, why farmers from Punjab, Haryana and some states of Western India are protesting against new farm law. At least, they are protesting may be with wrong idea. Other states are sleeping/watching. more
Dec 16
Sorry, I may be old and senile. But I have yet not been able to comprehend the rationale behind the current farmers' agitation. Can someone explain for my benefit and for benefit of many others the following: - is deciding/finalising agricultural policies comes under the purview of Central or State Government? If this subject falls under the purview of State Governments, then this agitation is wholly incorrect as it should be against the respective state governments; - Are the State Governments competent on their own to decide upon MSP pricing, contract farming and other issues being raised by farmers organisations?; - whether the Punjab Government has agreed to implement or declined to implement the 3 laws?; - if some media reports on presence of ultra leftist and anti national elements, including Khalistani supporters, and their instigating the present farmers agitation is correct, then it becomes clear that this is anti-national and not farmers agitation. In that case the Central Government should handle the present agitation with a heavy hand. more
Dec 16
It seems there is something specific to Punjab,Haryana and Western UP whose farmers are protesting steadfastly. Government needs to understand their specific needs. If it pertains to only middlemen, then there is no need to show any consideration. The focus should be on farmers and their earnings. If all farmers migrate to costly cereals from Rice and Wheat, which may happen if they fetch higher price then we may have a shortage of these two important staple produce of our Country. We must tread cautiously on this matter. I am sure a solution can emerge if both parties have an open mind and understand each others concern very well. more
Dec 16
This is my third-time and third-time-revised comment . People on the streets hardheartedly believed in post-pandemic dynamic Revolutions which may come true sooner or later ! But , Punjabi Farmers made their political revolution from the North creating current context of contemporary revolutionary politics of protest-dynamism as their topical issue , as if they are inviting another Blue-Star-Style-Operation . India is not a Banana Republic.The Central Government is a well-wisher of Farmers and doing every thing possible for uplifting their Living Standards . But, Farmers revolt for shoplifting from the Government of India on the pretext of either MSP or APMC or New Farm Laws or mini-farmers or robbing by honest private players or suppression of their incomes by dishonest public players or deterioration of their produce-valuation at the hands of seasonal public-private-buyer-partnerships. Probably, you have missed to see and hear the day-before-yesterday's (12/12/'20) morning Interview of Union Finance Minister Smt. Nirmala Sitaraman on the TV India Today Channel . I am lucky to enjoy the interview. I followed the program of interviewed 'Questions & Replies' in coordination with rapt attention . For your information, let me tell you there is no justifiable cause from the farmers side against the New Farm Laws/Bills. It is evident to me in my mind that the Farmers are either politically motivated or purposelessly impatient when the economy is legally safe in the hands of our Union Finance Minister and recovering from the passing away pandemic . Moving Courts-of-Law amounts to stampeding the Constitutional Rights of the ruling BJP Party to erode BJP's Assertiveness and Authority in matters of Farmers' interests /Benefits/Future . In fact , Farmers are indulging in national waste of Time+Energy with a narrow light in their mind for astrological petty gains. Congregation of Farmers offends all laws of Indian humanity . Verbally, as of Rules & Laws , Farmer Associations have already run afoul of the Governmental Acts & Laws & Rules with conflicting dare . more
Dec 15
