Farmers Movement Archive

MSP law may not be a good idea, say traders and activists

Nagpur: The demand of mandatory purchase at Minimum Support Price (MSP) by farmers’ groups has left traders worried. After Centre’s announcement of repealing the three controversial farm laws, farmers are pressing for a law to make purchases at MSP mandatory. Traders and a section of activists say it will upset the entire system. They believe it would “not be feasible” for private traders to buy at MSP if the open market rates are lower. In such a case, the traders may withdraw from markets or resort to evasion. Some farm activists otherwise opposing the three farm laws say an MSP law may not be a very good idea. Shetkari Sangathana president and member of the Supreme Court-appointed committee on farm laws Anil Ghanwat said a move to enact such a law in Maharashtra sometime in 2018 had to be withdrawn. “There was stiff opposition. We had coined a phrase ‘vyapari ko jail toh kisan ko phansi’ (if jail for the trader, then death sentence for the farmer). This was to stress that if traders stop buying due to the MSP law, it would ultimately leave farmers in dire straits,” he said. Bharatiya Kisan Sangh (BKS), the farmers’ wing of the Sangh Parivar, has also been pushing for the MSP law. “Simply making purchases at the MSP mandatory would not be enough. The government needs to create a conducive environment for it,” said BKS secretary Dinesh Kulkarni. Kulkarni added, “For example, if the imports become cheaper then a proportionate customs duty can be levied to bring the rates to a level-playing field with the domestic market. The exporters can be compensated by a subsidy.” Even ensuring government’s mere presence in the open market can help, he said. “Moong rates had gone down in Madhya Pradesh recently. Following demands, the state government opened MSP procurement centres and soon even the open market rates improved,” the BKS secretary added. Kulkarni said distress-selling of crops below MSP remains an issue and needs to be resolved. Atul Senad, the chairman of agriculture produce marketing committee (APMC) at Kalamana, said an MSP law would eventually lead to traders shying away from purchases. “Due to climate change, these days the quality of crops has a lot of variation. There are a wide range of grades and the MSP cannot be the benchmark for all. However, if the traders refuse to buy the lower quality, farmers would be at loss,” Senad added. Vasantrao Naik Shetkari Swavalamban Mission chairman Kishore Tiwari said the government will have to come forward and bridge the gap between market rates and MSP. Veteran activist Vijay Jawandhia said government intervention is the time-tested method. “Prices of almost all the crops are linked with the international markets. If global rates are low, private traders may not be able to buy at MSP,” he added. Covid scare hits cotton rates Cotton rates that had touched Rs8,500 a quintal on an average are now down by Rs300 due to fears of the newly- emerged Omicron variant of coronavirus, say traders. There are apprehensions that emergence of the new virus may hit demand in the garment sector. Farm activist Vijay Jawandhia, however, said that despite the sentiment, rates in the international market have remained the same at $1.27 a pound. At this rate, the domestic prices should translate to around Rs8,800 a quintal but are on the lower side.

The Times of India

2021-11-29

Nagpur