Presentation : Can Proposed formula for MSP for Crops solve farmers crisis?

Can Proposed formula for MSP for Crops solve farmers' crisis?

Theme Presentation at Valedictory Session at National Cost Convention'2018.

Important Disclaimer: 

All data used in presentation are approved by the PMO, Ministers and Policy Makers of the Government of India. It means they all are responsible for the fate of farmers in India, because they have not objected to these defective and exploitative calculations, in fact they all endorsed it. 

Always say "Thank you" to the farmers when you sit for your next meal. They are responsible for our existence, not the government or anyone else.  

What society gave them in return. The poverty, distress and suffering. If government policies were sensible, why farmers are suffering so much. This itself is a basic question. No amount of claims, statements and assurance makes any sense because the fact is farmers are suffering and as society we have just exploited them for our benefit. Facts are in front of us, we may choos to ignore the facts but facts exist.

As policy makers we have no interest in ensuring profitability of agriculture or ensuring respectable life for farmers because the policy makers are more concerned about consumers and industrial sectors. For them, agriculture and farmers are just resources to exploit for political gains. This is also acknowledged by the policy makers in the Hon'ble supreme Court of India.

Even the criteria used for calculation of agriculture prices by The Commission for Agricultural Costs & Prices (CACP) are absurd and illogical. This does not even consider profitability for the farmers. Under any costing formula this is illogical. This formula is not used by any other sector. 

The costing formula used by CACP under the direction of policy makers to compensate farmers are exploitative in nature and in fact treats farmers just as labour with no dignity. No compensation for their skill and risk bearing ability.

The cost components used by CACP are as follows, but these are not calculated based on factual data but fictitious numbers. The biggest cause of concern is faulty calculations of fixed cost and labour cost. 

This has resulted in reduced productivity, faster depletion of natural resources, distress in rural economy and farmers suicide.

The faulty costing has made agriculture a loss making proposal for farmers. The net profitability as calculated by CACP is proving the fact that agriculture is a Non-Performing Asset (NPA) for the country. 

The fact is no bank will even lend to farmers with these defective costing methods.

Government itself is the biggest exploiter of the farmers. The net gain to farmer is negative but the state governments are charging up to  14.50% tax at first point of transaction itself i.e. when farmers are selling crop to buyer. Is this an act of welfare state or the state with exploitation mindset?

The worst situation comes, when Minimum Support Price is fixed lower than the cost of production. This clearly indicates either the people responsible for the job are either incompetent. In fact, they should be made accountable for instigating suicides by the farmers.

This is also clearly mentioned that even costing by defective formula is also not fully compensated to the policy makers. This clearly indicates that there is no concern for farmers welfare. 

This illogical decision making is also justified by illogical reasoning. Please read the remarks column.

With all the organised exploitation with the support of policy makers, still the Chairman CACP feels they are doing great job and farmers should feel happy. Please the following slide carefully. This clearly indicates not only professional incompetency but no respect for humanity and human rights. 

And the outcome is:

In the welfare state called India:

My question of all cost accountants of India and Institute of Cost accountants of India are:

1. What should be the moral duty of costing professionals when largest section of society is exploited by faulty costing methodology? 

2. When the largest private sector i.e agriculture is exploited by the policy makers for political gains by using defective costing methods and pushing the largest section of the society to misery and encouraging them to commit suicide?

Should costing experts and professionals remain quite? The question is why they are quite? 

Why they are not raising their concern about these exploitative costing methods?

After all the exploitation, farmers is still doing his job by producing food for all of us and our families.

Are we doing our duty by raising voice to protect their Rights to have dignified life and his family?

We must do whatever we can to ensure dignified life for our food producers.

Today, poor farmers are subsidizing urban rich. The policy makers are part of urban rich. This exploitation must stop with immediate effect. 

CACP has failed  in doing justice for farmers, because the existence of people responsible at CACP are at the mercy of political masters. 

In fact, incompetency of CACP is responsible for exploitation of farmers by hiding true costs of food production in India. Successive Governments used defective costing approach of CACP to exploit farmers. 

The biggest question for this forum is: 

Can members and experts of Institute of Cost Accountants of India develop correct costing methodology to protects farmers life and dignity? Or, you will also remain opportunist by keeping quite and allow exploitation of farmers to continue.

As consumers, why we feel happy when we know our food is based on exploitation of farmers? Why we remain quite?

Think about it before it is too late.

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