JAAGO AAM AADMI...(MSP Vs MRP)

While writing this article, I was reading through a news item published on VJAS that 5 farmers have committed suicide in last 48 hours which is sad news for all of us .The collective Indian society has failed our Farmer brothers by not taking this Government to task. These suicides are happening despite of 3000 Crore package from Prime Minister announced during June 2006 for resolving their issues on priority basis so that the prevailing acute distress can be minimized and farmers’ suicides can be controlled. This was followed by the ELECTION SPECIAL PACKAGE OF RS 60000 CRORES WRITE OFF! Yet the suicides continue…

Keeping in view the interests of the farmers, state and central Government’s announces Minimum Support Prices (MSP) for several major crops from time to time. Farmers are free to sell in the open market or to the Government at the MSP.

The price support policy of the Govt. is directed at providing to insurance to farmers against any sharp fall in farm prices. The minimum price is fixed beyond which the market price cannot fall. Unfortunately still our farmers are not getting fair price for their crops. Many times we see news items such as farmers throwing their crop on streets as they can’t even retrieve transportation cost.

Why is so? Government employees get their salaries revised from time to time by means of pay commissions so are why can’t there be a commission or authority to maintain healthy difference between MSP and Retail price.

Below is a table of MSP and MRP for few crops during 2009 which clearly indicates the failure of the price intervention mechanism operated through MSP and thus failed to protect the farmers with the policy instrument.

Table: Comparison of MSP against Retail Price

Product	MSP for 2009-10	Market Price	% Difference between MSP & MRP
Rice	Rs.980/-	2800-*	190%
Tur Daal	Rs.2,300/-	9400	409%
Moong	Rs.2,760/-	11000	399%
Wheat	Rs.1,080/-	1800-2800	213% (Avg of MRP shown considered)
Sugar Cane*	Rs.1,077/MT	Sugar-44000/MT -**	See comment in note below
Jowar	Rs.860/-	2900	337%
Bajra	Rs.840/-	2300	274%

* One Quintal of Paddy yields 65KG of Rice

** Note: Sugar prices are/MT

Approx 5 tonnes (5000kg) Sugarcane is needed for 1 tonne (1000 kg) of sugar production.

The bottom-line is that Farmers are not getting fair price for their products despite of price rise its middle men/multinationals that are making money. For instance 16 million tonnes of Sugar was exported from India at the standard price of Rs.18 and above per KG to allow sugar companies make windfall profits and now we have to import the same from Brazil at the price of Rs.30, this additional price is directly passed onto the consumer. Similarly, Wheat was available in Punjab at Rs.850/Quintal but UPA Government imported Wheat from Australia at Rs.1,080/Quintal, the same price if had been paid to our farmers from Punjab they would have been more than happy.

Overall Government has failed in ensuring food security for its citizens despite being headed by a renowned economist.

The government cares more for The Khan than for our Khana!

Speculation & Manipulation at Commodity Exchange

Out of 14 lakh ton turnover actual delivery was only 1,400 tonnes. Hence 99.99% of turnover was speculative trading during May to Dec 2009.

It’s time we opened our eyes and see the Shylockian machinations of the UPA government. They will bleed us for 4 years and then give sops in 2014 which is the election year, hoping that the voters forget the past 4 years like we had done this time!