Farmer protests are a reflection of this sector’s structural crisis

Context: The ongoing farmer's protest against farm acts is not limited to a specific issue of Minimum Support Price (MSP), it is rather a reflection of this sector’s structural crisis. Farmers protests in recent years from Maharashtra to Madhya Pradesh are privy to this crisis only.

Issues highlighted by the ongoing Farmers protest

• Structural issue:
• Sustained declined of farm incomes due to low prices and increasing losses.
• Overall fall in demand in the Indian economy, resulting in pressured farm gate prices.
• Rising input prices and other costs of cultivation.
• Twin blow to farm sector: resulting in a fall in demand for agricultural commodities.

1. A slowing economy.
2. The COVID pandemic.

• Inefficient and politicized APMCs with weak procurement machinery based on uneven MSP system.
• Present APMC bypass act: is viewed as an attempt by the government to withdraw from nominal commitment to protect farm incomes. But conversely, MSP acts as the last saviour.
• As it Ensures better prices for crops that are state-procured (mainly rice and wheat)
• g.: For Maize, the prices received by farmers in most states, including Punjab and Haryana, have been much lower than the MSP. It is worse in states such as Bihar, where an APMC does not exist.

Way forward:

• Widen procurement to cover more crops and more states.
• Implementing ‘Swaminathan Committee’ recommendations: Raise MSPs to 1.5 times the cost of cultivation
• Take steps to realize the promise of Doubling Farmers income.
• Constructive engagement: With state governments and farmer unions on concerning issues.

Conclusion: Government may consider making MSPs a legal guarantee (like Food Security Act 2013) which will help in ensuring remunerative prices for farm produce. This is also necessary to generate demand in the country’s economy, given that agriculture still provides livelihood to almost half of India’s working population.