Cabinet approves MSP for 14 Kharif season crops amid rising farmer unrest, but is it enough?

In one of its first major decisions, the Modi Government has decided to assuage the farmers by increasing the Minimum Support Price (MSP). The Union Cabinet has approved the MSP for 14 Kharif season crops. This decision reflects the Government’s attempt to ensure that farmers receive fair and remunerative prices for their produce, thereby helping them cope with rising input costs and inflation. Whether the farmers would welcome it, is doubtful. But it would indeed be some relief for the farmers. The approved MSP rates for Kharif crops indicate a substantial increase over the previous year. For instance, the MSP for paddy, the staple Kharif crop, has been raised by Rs100 per quintal, setting the new price at Rs 2,180 for the common variety and Rs 2,200 for the Grade A variety. Similarly, the MSP for maize has been increased by Rs 75 per quintal to Rs 2,130. These adjustments are part of a broader effort to cover a range of crops including cereals like rice and maize, pulses such as moong and tur and oilseeds like soybeans and groundnuts.

The recent surge in farmer protests underscores the presence of deeper systemic issues that extend beyond mere price support. High input costs, inadequate procurement infrastructure, mounting debt and the impacts of climate change are among the key factors driving farmer dissatisfaction. Many farmers struggle to access the benefits of the MSP due to insufficient procurement mechanisms and delays in payments. Moreover, the cost of essential inputs like seeds, fertiliser and pesticides has escalated, diminishing the net gains from the increased MSP. The pervasive issue of debt, compounded by crop failures and unpredictable market prices, further exacerbates the financial instability of farmers. These factors underscore the need for interventions that go beyond MSP hikes to address the underlying challenges faced by farmers. While the MSP increase is a positive step, it alone is unlikely to resolve the multifaceted issues confronting the agricultural sector. Comprehensive reforms are essential to ensure sustainable improvements in the livelihoods of farmers. To achieve this, the Government must consider a holistic approach that includes enhancing agricultural infrastructure, improving access to credit and providing insurance against crop failures. Encouraging crop diversification and improving market access can also help mitigate risks associated with price volatility and reduce farmers’ reliance on a few staple crops. Strengthening procurement systems to ensure timely procurement and fair pricing is crucial to making the MSP more effective. The Cabinet’s approval of increased MSP for 14 Kharif crops, though inadequate, is a welcome development that reflects the Government’s recognition of the pressing challenges faced by the agricultural sector. A concerted effort to implement systemic reforms alongside fair pricing mechanisms is essential for the advancement of India’s farmers and the agricultural sector as a whole..