Govt. to Supreme Court - Govt. Cannot Guarantee Farmers Income

Govt. to Supreme Court - Govt. Cannot Guarantee Farmers Income

MSP cannot be 50% more than cost of produce, (but MSP is also not ensured), says Centre to SC

Farmers' plight has worsened due to the non-remunerative nature of agriculture but the Centre on Friday told the Supreme Court that it would not be able to enhance the minimum support price (MSP) for agricultural produce to be 50% more than the input cost. 

A PIL filed by Consortium of Indian Farmers Association had complained that agriculture had become non-remunerative and was driving farmers to borrow heavily from local money-lenders. Unable to repay loans, farmers were committing suicide, it said. Suggesting a quantum jump in the MSP to help them overcome their pitiable financial condition, the association had demanded implementation of the National Policy for Farmers. 

Appearing before a bench of Justices S J Mukhopadhaya and N V Ramana, additional solicitor general Maninder Singh submitted the Centre's affidavit, which said MSP for 22 agricultural commodities and fair and remunerative price (FRP) for sugarcane were recommended by the Commission on Agricultural Costs and Prices (CACP). 

In Feb. 201, government gave this affidavit to court and after that PM said, we will double the farmers income by 2022. The fact is with the inflation, nominal income will double even without any government support. Challenge is net income. PM has not clarified which income he is talking about. Will PM increase net income to double. How much income will grow by 2019  by the time general election. This should be clarified.

MSP and FRP were fixed keeping in mind the cost of production, demand and supply, price trends in domestic and international markets, inter-crop price parity, terms of trade between agricultural and non-agricultural sectors and the likely impact of MSP on consumers, the affidavit said. "It may be noted that pricing policy, that is fixing of MSP, is not a 'cost plus' exercise, though cost is an important determinant of MSP. 

It does not factor in profitability to farmers. This is only to ensure consumers interest.

Govt. says, "The pricing policy seeks to achieve the objective of fair and remunerative prices and MSP is not an income policy," the agriculture ministry said. "Hence, prescribing an increase of at least 50% on cost may distort the market. A mechanical linkage between MSP and cost of production may be counter-productive in some cases. No comparison can be made about increase or decrease of price of one commodity as compared to other commodities as the same depends on demand and supply and market forces," the affidavit said. It said India accounted for only 2.4% of the world's geographical area and 4% of its water resources but had to support 17% of the world's population and 15% of the world's livestock. "The government has taken all possible steps for implementation of National Policy for Farmers, 2007 for development and growth of agriculture and allied sectors as well as for the betterment of farmers," it said.

Questions to Policy Makers: 

• 1. In which industry there are such restrictions like APMC, Stock Limit and MSP?

• 2. If MSP has not relevant and significance for farmers, why government is issuing these numbers every ?

• 3. Why only farmers have to suffer?

• 4. Are policy makers of India meeting their constitutional obligation as welfare state in the interest of farmers, or they are just worried about consumers only?

• 5. If government cannot ensure 50% income for farmers in Supreme court, how it will ensure doubling farmers income? Will farmers get 60% more income by 2019?

• 6. Is this fake assurance or supported by action plan?

Important:

How government is planning to double the farmers income is a mystery? The target year is 2022, means after next general elections. Why PM is not showing us the yearly target and road map?