Farmers’ unions and non-governmental organisations have expressed their unhappiness over the quantum of hike in the minimum support price (MSP) announced by the government for various crops.

The All-India Kisan Sabha has alleged that the MSP announced by the government actually would cause losses to the farmers. “For example, according to the cost plus 50 per cent formula should give farmers a price of ₹2,707.50 a quintal. But the farmers would get only ₹2,183, causing them a loss of ₹524.50 for every quintal that they produce,” Vijoo Krishnan, General Secretary of All India Kisan Sabha, told businessline.

“Similarly, they would lose ₹1,100 for groundnut, ₹479 for maize, and ₹1,475.5 for  cotton,” he said.

“The Government has not factored in the cost of irrigation, fertilisers and labour. The increase in irrigation costs, fertilizer cost etc has not been taken into account,” he said.

Ravi Kanneganti of Rythu Swarajya Vedika, an umbrella organisation of non-governmental organisations, agricultural scientists and economists, has expressed concern over the meagre hike in the MSP for paddy. He believes that this move by the government suggests an attempt to discourage paddy cultivation.

“The sample size is too low and doesn’t reflect the farmer population. The averages taken for family labour and cost of cultivation are very small and doesn’t reflect the reality,” he said.

He, however, said that the MSP for pulses is encouraging. “But the issue is there is  no marketing or procurement support for pulses,” he felt.

Maninder Singh Nayyar, Founder and CEO of CEF Group, however, welcomed the increase in the MSP. “It will serve as a great support to the farmers. At present, the government has increased the MSP for 23 crops including paddy, ragi, maze, tur, and moong among others. Moong has seen the highest increase in MSP among all the crops. Besides serving as a great financial relief to the farmers, this move is bound to boost crop diversification,” he said.

“The decision will also strengthen the food security of the country as the farmers will receive remunerative prices for their produce,” he said.

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