The All India Kisan Sabha (AIKS), the farmers' wing of the Communist Party of India (Marxist), highlighted the divergence of the BJP-led NDA Government's promise of fixing remunerative minimum support prices (MSPs) at least 50 per cent over the cost of production (CoP) and those approved by the Cabinet Committee on Economic Affairs (CCEA), in a note released here on Wednesday.

The organisation stated that increases ranging between Rs.15-50/quintal did not reflect actual CoPs and rising input costs.

"The MSP of paddy has been increased merely by Rs 50/qtl to Rs 1.410/qtl. It falls far below the CoPs in most States. In addition, the BJP Government has issued an order stating that there would be no procurement from States providing Bonus over and above the MSP," the note said.

The CoP for ragi is estimated by the Commission of Agricultural Costs and Prices (CACP), which recommends MSPs, at Rs.1,793.87/qtl. The approved MSP for 2015-16, after a Rs 100/qtl hike, stands at 1,650/qtl. For jowar, the organisation said, the CACP estimated CoP at Rs.1,788.20/qtl but an MSP of only Rs.1,570/qtl had been fixed.

For pulses like moong, for which the Centre has fixed a Rs 200/qtl bonus over the CACP's recommendation of a Rs.50/qtl hike and effectively raised the MSP to Rs. 4.850/qtl, fell below the CoP of Rs.4,970.77/qtl.

"The Government’s cost calculations are also far below the actual costs incurred by the farmers. The Government claims that the Rs.200/qtl bonus for pulses is going to give a strong price signal to farmers to increase acreage and invest for increase in productivity of pulses.

"This claim has no basis as the CoPs have further increased over the course of the year and the MSP falls below it in pulses as well as all other crops," the note said.

The AIKS also alleged that unprecedented suicides in the aftermath of extensive crop damage caused by unseasonal rain and hailstorms during the Rabi season had not been taken into account by the Centre. "The Government's announcement is making a mockery of the plight of farmers," the note added.

comment COMMENT NOW