MSP announced by Modi govt inflicting losses on farmers: AIKS

"The MSP announced is unfair, belies the hopes of the farmers and inflicts huge losses on their incomes. Rather than doubling farmers' incomes as claimed by Prime Minister Narendra Modi, rising input costs coupled with unfair MSP will push large sections of the farmers, especially the small, marginal, middle farmers as well as tenants into indebtedness," the AIKS said in a statement.

MSP announced by Modi govt inflicting losses on farmers: AIKS

The All India Kisan Sabha (AIKS) has slammed the Centre over the recently announced MSP for the Kharif Season, and alleged that it is inflicting "huge losses" on farmers. The Union government on June 7 announced the Minimum Support Prices (MSP) for the Kharif Season 2023-24.

"The MSP announced is unfair, belies the hopes of the farmers and inflicts huge losses on their incomes. Rather than doubling farmers' incomes as claimed by Prime Minister Narendra Modi, rising input costs coupled with unfair MSP will push large sections of the farmers, especially the small, marginal, middle farmers as well as tenants into indebtedness," the AIKS said in a statement.

AIKS President Ashok Dhawale said the government has not kept its promise that the MSP will be given according to the Swaminathan Commission recommendation of C2 (production cost definition) plus 50 per cent. "It still remains a 'chunavi jumla' (unfulfilled election promise). Not a single crop has its MSP fixed as per this formula," he said. The AIKS said loss suffered by paddy farmers because of the government not implementing C2 plus 50 per cent is about Rs 683.5 per quintal. It added that at an estimate of about 4 tonnes per hectare productivity, the losses suffered will be to the tune of Rs 27,340 per hectare if C2 costs are taken into account.

"In Arhar, Moong, Urad, Sunflower, Sesamum, Nigerseed and Cotton, the losses per quintal range from around Rs 2,000 per quintal to even higher than Rs 3,000 per quintal," said AIKS General Secretary Vijoo Krishnan. According to calculations by the AIKS, the losses for Jowar crop are to the tune of Rs 1,069 per quintal, for Bajra Rs 216 per quintal, for Arhar Rs 1989 per quintal, and Rs 2,408 for Urad among others.

AIKS added that the estimates of the projected cost of production for paddy by Andhra Pradesh, Bihar, Karnataka, Kerala, Maharashtra, Punjab, Tamil Nadu, Telangana and West Bengal are higher than projections of the Commission for Agricultural Costs and Prices (CACP). "Similarly, in most crops, the state projections are much higher than the CACP projection. AIKS demands that the Union government led by the BJP revise the MSP and enhance it according to the C2+50 per cent formula and also assure procurement," it said.

The AIKS said Jammu and Kashmir, after the abrogation of Article 370, is no longer being featured in the collection of CS data. "The BJP government should include J&K and also undertake procurement from farmers there. AIKS calls upon all its units to rise up in protest against the betrayal of farmers by the Narendra Modi-led BJP government and expose their fraudulent claims," it added.

The government on Wednesday announced an increase of Rs 143 in the MSP of paddy to Rs 2,183 per quintal for this year, the second steepest increase in the last decade. For 2023-24 Kharif crops, the MSP has been increased in the range of 5.3 to 10.35 per cent, and in absolute terms, it has been increased by Rs 128 to Rs 805 per quintal.