Modi Govt Still Unconcerned About The Just Demands Of The Farmers

By Krishna Jha

The newly proposed farm laws that have been released now are worse than the earlier one against which the farmers sat on path breaking Dharna on the borders of the capital in 2020-2021. Irrespective of extreme weather, they had refused to compromise. These laws were brought with the support of International Monetary fund (IMF) and the World Bank (WB). Both these were the wings of Finance capital, and the process adopted was corporate friendly. They asked to cut all subsidies, including the farm and food subsidies. It was also against public stock holding and they had urged to dismantle it.

This step was strongly supported by Shanta Kumar committee, set up in 2014 under present regime. The three farm laws were promoted by the regime that were based on liberalisation and privatisation. The rightist forces, promoted by the ruling circle, started measures like privatisation and cutting down any support system for the farmers and their crops. The axe fell on the toiling masses. There was massive movement against the three farm laws. The Centre finally prepared to withdraw the laws.

But now the government has come out with draft National Policy on Agricultural Marketing (NPFAM), the proposed farm laws, that are worse than anything that had happened to farmers. The response to the new draft policy also may walk the same path, to resume the protest.

The farmers have once again decided to protest, alleging that the government has been unable to meet their demands, including that of a guaranteed minimum support price (MSP) for all crops. SKM, an umbrella organization of most of the farmers’ unions, has come out with its decision to launch a fresh common agitation demanding withdrawal of NPFAM.

The new laws are to clear the way for the destruction of the federal rights of the state, and interest of farmers. Then there are others too like marginal and small farmers, agricultural labour. There is no provision for MSP, and minimum wages for agricultural labour.

It is finance capital is spreading its wings. The objective of these laws is to get accommodated in the declining agricultural incomes, with rising production costs and shrinking employment opportunities that have exacerbated the Indian agricultural crisis. It is impacting small and marginal farmers and agricultural labourers disproportionately. For millions of farmers, MSP is the only light that offers them vision, and also a promise for reasonable return on their toil.

The purpose is also to clear the way for the corporate agri-business and convert the 7057 registered markets and 22931 Grameen Hats across the country to be integrated with digital public infrastructure. All this indicates that there exists a close alignment with the World Bank and International Finance capital. Especially in the context of value chain as “the full range of value adding required to bring a product or services through the different phases of production including procurement of raw materials and other inputs,” said the SKM statement.

There has been a proposal to unite both private and public infrastructures, through advanced technologies such as digital infrastructure, machine learning, and artificial Intelligence (AI) learning, but the SKM stand is that these reforms also propose deregulation, effectively allow private sector, specifically, corporate agri-business, to dominate over production, processing and marketing.

The high-level committee constituted by the Supreme Court of India, had directly dwelt on the issues while sounding an alarm over the country’s agricultural crisis, and echoed the sentiments of the protesting farmers in recommending a loan waiver for farmers and the legal recognition of MSP to protect their income.

Historically, the MSP was introduced in 1965-66 to achieve increased foodgrain production by encouraging the adoption of high-yielding varieties of wheat and rice. It is an administered price of agricultural produce fixed by the Union Government for its purchase from farmers for the public distribution system (PDS) and to ensure that they get a reasonable margin on the cost of production. It also protects the farmers against a distress sale due to a drop in output prices during gluts.

However, More than 60 per cent of India’s population relies primarily on agriculture for its livelihood despite the sector contributing less than 20 per cent to the nation’s economic output. Unfortunately, the underlying core issues of the agricultural crisis have been pushed under the carpet due to the farmers’ protests for a legally binding MSP.

A legally binding MSP is necessary to make farming a more stable and successful business as no one will be able to purchase farm produce below this price, and doing so would be punishable by law.

It should be mentioned here that the MSP is only a part of the problem. Farmers have to toil hard to get returns in enough quantity for sustenance since their landholdings are generally small-sized and highly fragmented. Added to it are the other nagging issues like hike in production costs, lack of demand-driven production and depleting natural resources, namely soil health and water, including groundwater.

It is also imperative to concretize the requirement for cereals, pulses and oilseeds and then prepare an agricultural production plan for these quantities by identifying the ecologically benign areas for the production of these crops. The legally binding MSP only for identified crops in benign regions may be implemented; this will encourage the production of required crops as well as import substitution and can go a long way in improving the sustainability of Indian agriculture, apart from meeting the trade deficit.

To ensure the sustainability and prosperity of agriculture, which is moving towards an ecological disaster, a tactical balance between economic viability and farmers’ welfare must be struck. A legally binding MSP, a crucial element of the agricultural price policy but no panacea for resolving the agrarian distress, is the minimum the government should do to keep the farmers in the business of supplying affordable food. (IPA Service)