Farmers’ income can be doubled by ensuring minimum support price in States like Uttar Pradesh, said Niti Ayog Member Ramesh Chand while suggesting States to frame agricultural policies in alignment with the current environment in the country.

Addressing the Rural Voice Conclave on agriculture on National Farmer Day Saturday, Chand said there are States where farmers’ income can be doubled straight away by ensuring they receive the MSPs for their crops. “States like Uttar Pradesh have such opportunities through MSP. On the other hand, there are States (like Punjab) that have reached a saturation point,” Chand said. He also suggested that farmers’ income can be raised significantly with focus on quality and health centric food products.

He appealed the farming community to put pressure on States as well implement policies in areas falling under their jurisdiction.

“We need to pursue our agriculture policy in alignment with the current environment. For making India a developed nation by 2047, the country’s per capita income needs to rise by 6-7 times. Agriculture sector has a major role to play in the objective to make India a front ranking country in the world,” he said.

Pointing out that at least 4-5 per cent growth in agriculture is also required to ensure inclusive expansion of the Indian economy, Chand said: “States like Andhra Andhra Pradesh, Madhya Pradesh, Tamil Nadu and Telangana have shown agriculture growth of 6-7 per cent, which is better than even manufacturing. The same growth trajectory can be replicated in the rest of the country.”

He also said that government’s contribution in agriculture investment is about 16-17 per cent, with the majority of the investment done by farmers themselves. He lamented that the corporate sector has treated the rural economy only as a market.

Placing his wish for the next five years, farmer leader V M Singh, who has been spearheading the movement on legal guarantee of MSP, said that the government should ensure farmers get the MSP, which should be based on 50 per cent profit over C2 (comprehensive) cost of production. He appealed to farmers not to get divided on the basis of caste or religion.

The C2 cost is the A2+FL cost of production plus imputed rental value of owned land plus interest on fixed capital, while A2+FL is all paid-out cost plus the imputed value of family labour.

Ajay Vir Jakhar, chairman of Bharat Krishak Samaj, said that farmer leaders should move from demanding C2 cost+50 per cent profit, as Punjab farmers are already receiving those prices for paddy and wheat .The government has been procuring their entire produce and yet the maximum farmer protest/agitation is happening in the State.

According to CACP reports, the rice procurement in Punjab is 99 per cent of its production and in 2023-24, the projected cost of production (C2) is ₹1,462/quintal for paddy and ₹1,503/quintal for wheat. But the State government has projected the cost of production at ₹2,089/quintal for paddy and ₹2,051/quintal for wheat during 2023-24.

Against the all India average cost of production at ₹1,455/quintal ((A2+FL) and ₹1,911/quintal (C2), the government has fixed paddy MSP at ₹2,203/quintal (Grade A). Similarly, the wheat MSP is ₹2,275/quintal, against the all India average cost of production of ₹1,128/quintal ((A2+FL) and ₹1,652/quintal (C2).

The actual cost of production of paddy varied from ₹784/quintal in Punjab to ₹3,101/quintal in Maharashtra between 2019-20 and 2021-22. The estimates of projected cost of production for paddy by Andhra Pradesh, Bihar, Karnataka, Kerala, Maharashtra, Punjab, Tamil Nadu, Telangana and West Bengal were higher than CACP’s projections for the 2023-24 crop year (July-June), while cost estimates by Chhattisgarh, Jharkhand, Madhya Pradesh and Uttar Pradesh were lower than CACP estimates.

Former Amul MD R S Sodhi said that there are major investment opportunities in branded milk and products. He estimated the investment at ₹1 lakh crore in the next 6-7 years which can have a job creation potential of 72 lakh. Former NABARD Chairman Harsh Kumar Bhanwala suggested laws for leasing of agricultural land should be expedited by States so that tillers are encouraged to make investment in cultivation.

Roshan Lal Tamak, CEO of DCM Shriram, said that the policy ecosystem in areas like ethanol has helped in success of blending, and due to this policy measure, the sugar industry is in a position now to make investments in at least 500 compressed bio-gas (CBG) plants, giving a boost to environment-friendly agriculture.

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