Crop Diversification under MSP, Contracts with NAFED, CCI, What’s Govt Offer to Farmers? | Explained

The government discussed diversification of crops with Punjab farmers during a meeting held in Chandigarh on Sunday, and decided to bring a five-year proposal where it will buy their crops for that period through agencies such as National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) and Cotton Corporation of India (CCI).

Diversification of crops has been the root cause of the agrarian crisis in Punjab, which the government has dealt with by offering cultivation of crops such as pulses, cotton and maize, which can reduce imports and help conserve water in the state.

Union commerce and industry minister Piyush Goyal with two other Union ministers — Minister of State for Home Affairs Nityanand Rai and Farmer Welfare Minister Arjun Munda — and Punjab chief minister Bhagwant Mann held the fourth round of talks with the farmers in Chandigarh on Sunday.

The protesting farmers have sought time till February 20 from the government to discuss the proposal with other forums. The discussion on the farmers’ key demand — a legal guarantee of minimum support price (MSP) — is, however, still pending.

What is in the five-year proposal of the government?

• The National Cooperative Consumers’ Federation of India Ltd and National Agricultural Cooperative Marketing Foundation of India Ltd will sign contract with the farmers, who grow tur, urad, masoor dal or maize to buy their crops for the next five years, with no limit on the buying quantity.

• Farmers growing arhar or tur dal, if brought under MSP, will reduce imports, reduce water consumption in Punjab and provide pulses at subsidised prices to consumers.

• The Cotton Corporation of India (CCI) will procure cotton crop on MSP. The farmers have demanded that cotton and maize must be covered under MSP.

What else was discussed in the meeting?

The coordinator of Kisan Mazdoor Manch (KMM), Sarvan Singh Pandher, said the government should raise the MSP to at least 50% more than the weighted average cost of production, as suggested in the Swaminathan Committee.

Sources, as quoted by The Indian Express, said different formulae to calculate the production cost was discussed in the meeting.

The Commission of Agricultural Costs and Prices (CACP) give three definitions of production costs: A2, A2+FL and C2. A2 refers to all paid out expenses incurred by farmers such as seeds, fertilisers, chemicals, labour, fuel and irrigation. A2+FL covers actual paid out costs plus an imputed value of unpaid family labour. C2 includes rentals, interest forgone on owned land and fixed capital assets on top of A2 + FL.

Union leaders paid respects to two farmers – Gyan Singh, 78, who died of heart attack while protesting on the Shambhu border on Friday, — and Manjit Singh, the unit president of BKU (Krantikari) who fell and died at a hospital in Patiala on Sunday evening.

CM Mann, who was also present in the meeting, advocated for crop diversification, and discussed lifting internet suspension in certain areas such as Patiala, Sangrur and Fatehgarh Sahib.

Nearly 20,000 farmers are protesting at Shambhu and Khanauri borders as Haryana Police is handling their movement with tear gas shells and rubber bullets.

A high-level meeting of the Samyukta Kisan Morcha will be held in Delhi on February 22 to strategise on future demands and actions, SKM leader Balbir Singh Rajewal told news agency PTI.