MSPs Still In Place Five Months After Farm Laws Were Brought In, Says Government

The central government today released a bunch of data to counter what it sees as a flawed narrative around the new farm laws against which thousands of farmers have been protesting over the past many days.

The Union Agricultural Ministry released information on a variety of issues, including minimum support price (MSP), procurement, and farmers' welfare, under Prime Minister Narendra Modi's tenure.  

For instance, on the matter of MSP, the government's primary argument is that the controversial farm ordinances got the President's nod on June 5 this year. Yet, there has already been a 40% increase in MSP for urad (now at Rs 6,000) during financial year 2020-21 since then. The figure for masur, similarly, has increased by 73% to Rs 5,100, the ministry data show.

This, the government says, disproves the myth that the new laws have done away with the MSP system.

The government claims, overall, there has been an 11-fold increase in the its farm budget from Rs 12,000 crores in financial year 2009-10 to Rs 1,34,000 crore in 2020-21, with 42 lakh farmers being paid out Rs 73,500 crore.

Another set data released by the government today related to crop procurement. "Over 32.12 Lakh MT of paddy procured from 2.83 lakh farmers with MSP outflow of Rs 6,065.09 crore as on October 9, 2020," the ministry's statement said.

Similarly, in Rabi 2020, the MSP procurement of wheat, paddy, oil seeds, and pulses together amounted to Rs 1.13 lakh crores, up 31 per cent from 2019. Procurement of wheat for rabi 2020 touched an all-time high of 382 lakh MT and its MSP has increased from Rs 1,450 per quintal to Rs 1,925 in the past five years.

The ministry maintains that the new farm laws have only introduced a new framework and not removed the old MSP system, adding that it is all now a matter of the farmers' choice.

Over the past five days, thousands of farmers across the country, especially in Punjab, have been protesting against the new laws, seeking its immediate withdrawal. Large groups of them have reached the borders of Delhi, saying they are ready to do what it takes to see the end of the three farm laws.