Despite Higher MSP, Farmers Continue Protests Against Modi Government

Even with MSP rates tripling compared to the previous Congress government, Indian farmers persist in protesting, demanding legal guarantees and broader agricultural reforms.

Introduction

The Minimum Support Price (MSP) has been a cornerstone of India’s agricultural policy, ensuring farmers receive a guaranteed price for their crops. Recently, despite the Modi government’s claims of significantly increasing MSPs—reportedly three times higher than during the Congress-led United Progressive Alliance (UPA) era—farmers across the nation continue to express dissatisfaction and stage protests. This article delves into the reasons behind this ongoing discontent, the government’s stance, and the broader implications for India’s agricultural sector.

Understanding MSP and Its Importance

MSP is the minimum price set by the government at which it purchases crops from farmers, aiming to protect them from price fluctuations and market uncertainties. This mechanism covers various crops, including staples like wheat and rice, ensuring that farmers have a safety net against potential losses.

Government’s Claims of Increased MSP

According to data from the central agriculture ministry, during the ten-year tenure of the UPA government under Prime Minister Manmohan Singh, farmers received a total of ₹7,04,339 crore as MSP. In contrast, under the Modi-led National Democratic Alliance (NDA) government, this figure has reportedly risen to ₹23,12,267 crore. This substantial increase is presented by the government as a testament to its commitment to farmers’ welfare.

Farmers’ Perspective and Ongoing Protests

Despite these figures, many farmers remain skeptical and dissatisfied. Their primary demands include:

Legal Guarantee for MSP: Farmers are advocating for MSP to be enshrined in law, ensuring that the government is legally bound to procure crops at these prices. They argue that without legal backing, MSP remains a policy tool subject to change, leaving them vulnerable to market forces.
Comprehensive Agricultural Reforms: Beyond MSP, farmers are calling for broader reforms that address issues like rising input costs, debt burdens, and fair pricing mechanisms that account for the actual cost of production.
Implementation of Swaminathan Commission Recommendations: Farmers demand the full implementation of the Swaminathan Commission’s recommendations, which suggest that MSP should be set at least 50% above the comprehensive cost of production.

Contrasting Views and Political Dynamics

The government emphasizes its efforts to support farmers through increased MSP and other initiatives. For instance, the PM-KISAN scheme provides direct income support to farmers. However, critiques highlight issues of exclusion and unmet income targets within such programs.

Opposition parties, notably the Congress, have seized upon the farmers’ discontent to challenge the government’s narrative. They accuse the Modi administration of reneging on promises related to MSP and failing to implement key agricultural reforms.

Recent Developments and Protests

In February 2024, farmers initiated the ‘Delhi Chalo’ march, aiming to bring their grievances directly to the nation’s capital. The march was met with significant resistance from law enforcement, including the use of tear gas and barricades to prevent their entry into Delhi.

Additionally, farm unions called for a ‘Grameen Bharat Bandh’ (Rural India Shutdown) to press their demands, leading to widespread participation across various states.

Government’s Response and Policy Measures

In response to the protests and as part of its agricultural policy, the government announced a 6.6% increase in the wheat purchase price, raising it to ₹2,425 per 100 kg for the 2025 season. This move aims to encourage farmers to expand wheat cultivation and reduce the need for imports.

Despite such measures, farmers argue that these incremental increases are insufficient without a legal framework guaranteeing MSP and comprehensive reforms addressing the broader challenges they face.

Broader Implications and Challenges

The ongoing farmer protests underscore deeper issues within India’s agricultural sector:

Economic Viability: Many farmers struggle with rising input costs, stagnant incomes, and mounting debts, making agriculture increasingly unviable for small and marginal farmers.
Policy Implementation: There is a perceived disconnect between policy announcements and on-ground implementation, leading to mistrust among the farming community.
Political Ramifications: The farmers’ agitation has significant political implications, influencing electoral outcomes and shaping the discourse around agricultural policies.

Conclusion

While the Modi government highlights its increased MSP allocations as a significant achievement, the persistent protests by farmers reveal underlying discontent and unmet demands. The call for a legal guarantee of MSP and comprehensive agricultural reforms reflects the urgent need to address systemic issues within India’s agrarian economy. Engaging in meaningful dialogue with farmers, implementing promised reforms, and ensuring that policy measures translate into tangible benefits on the ground are crucial steps toward resolving this ongoing crisis.