Mazdoor Ekta Committee has organised this meeting to discuss the real reason behind the government’s refusal to accept farmers’ demand for MSP.
The Central Government announces Minimum Support Price (MSP) for 23 agricultural products every year, but farmers are assured of purchase at MSP only for wheat and paddy, that too only in some areas of the country. Less than 15 percent of farmers get the benefit of MSP. In many places, farmers have to sell at prices lower than the cost they incur.
Due to this, most of the agricultural land in some states is used for growing wheat and paddy. Farmers cultivate relatively less oilseeds and pulses; this results in imports of these products, which are then sold at a higher price in the market and therefore fall out of the diet of the majority of the working people. Lower consumption of pulses is a major source of malnutrition.
The demand for a law guaranteeing MSP and government procurement is completely justified and of great importance. It is the duty of the government to fulfil this demand.
Comrades,
Our experience shows that merely passing laws is not enough. Laws are violated blatantly. Government procurement is a must to make the legal guarantee effective.
These days it is being propagated that the government should not buy the crop, but private traders should buy the crops and then the government should compensate for the loss of those farmers who sell the crop at a price lower than the MSP. In this process, the private traders will make huge profits. They will reduce the market price and they will get a full opportunity to loot the government treasury.
Comrades,
The only way to give an effective guarantee is for the government to buy all agricultural produce at MSP. The agencies of the central or state government should buy a large part of those agricultural products for which MSP is announced. Our life experience tells us that if even 30 per cent of a crop is purchased by public agencies at MSP, then all private traders are also forced to pay the same price.
Government officials are presenting arguments as to why the demand of MSP of farmers cannot be met.
The first argument of the officials is that by guaranteeing MSP, retail prices will increase and this will greatly increase the cost of living for the working class.
Comrades, there is a huge difference between the price at which the crop is purchased from the farmer and the price at which the workers have to buy food items.
For example, in 2023-24, the MSP of tur dal was Rs 7000 per quintal – that is, Rs 70 per kg. Whereas dal was being sold in grocery stores at around Rs 200 per kg. The reason for this difference was the huge profits being made by private traders and capitalist companies, engaged in wholesale and retail trade.
If a public agency like FCI buys tur dal from farmers at MSP at Rs. 70 per kg, then even after adding the average cost of transportation and storage, it can be made available in ration shops at a price of less than Rs.100 per kg.
If the purchase and distribution of agricultural produce is done by public agencies instead of private entities, then the retail price can be brought down. Those who say that guaranteeing MSP will increase retail prices are lying.
The second argument is that if the government buys 23 crops at MSP, then the government will have to spend Rs. 10 lakh crore for it, due to which the government will not have money left for other important projects. This argument is given to mislead people.
Firstly, the government does not need to buy the entire quantity produced. All it has to do is to purchase a substantial part to ensure stabilisation of market price around the MSP.
Again, this completely ignores the money that government agencies will get back when they sell the goods they buy.
The government needs to make a one-time investment to increase public storage capacity. At present, the FCI and other public agencies have warehouses mainly for storing wheat and paddy. If they start buying other crops in large quantities, they will need to expand their storage capacity. If government procurement is linked to public distribution, more fair price shops will also need to be opened. Such expenditure would be a worthwhile investment, which would not only ensure remunerative prices for farmers but also ensure availability of food at affordable prices to workers and the general public.
The third argument is that if traders cannot buy agricultural produce at prices below the MSP, it will harm the interests of farmers because when there is a bumper harvest, farmers will not be able to sell their produce.
Those who give this argument are only thinking about private traders. When there is a bumper crop and the demand is low, the government will buy it at MSP and store it. For this, the government will have to make arrangements for storing more grains.
If the government increases the storage capacity, MSP can be given for 23 crops. There is a need to invest in cold storage facilities for fruits and vegetables, so the government can buy them at MSP and store them. This will ensure that farmers get MSP and workers will get fruits, vegetables, pulses, rice, oil etc. at affordable prices.
If the production of any crop is less in any year, the government can take it out of its stock and sell it in the market at a reasonable price. If there is excess of any crop, the government can buy it and store it. In this way, neither farmers nor workers will suffer losses. The prices of food items will be controlled in the market and there will be no black marketing.
Comrades, the problems of farmers have persisted in the country since 1947 till date. The drama of the ruling party and the opposition continues in the Parliament, no matter which party or coalition is in power. The party which is in the opposition pretends to fight for workers and farmers by raising their issues, but when it comes to power, it forgets the issues of the people and starts fulfilling the agenda of big monopoly capitalists. The power to make laws or take policy decisions is only with the cabinet of the ruling party. From this we can understand that the problem is not just with this or that party, the problem is with the existing capitalist system and the entire political system that sustains it.
In the last several years, the number of private monopoly companies involved in the field of agricultural trade has increased rapidly. Indian and foreign monopoly capitalists consider the agricultural sector as a source of huge profits for them, and so they want to dominate the agricultural trade.
The real reason behind the Central Government’s refusal to give a legal guarantee for the purchase of all agricultural products at MSP is that government purchase at MSP goes against the interests of monopoly capitalists who make maximum profits from agricultural trade.
The farmers’ demand for a legal guarantee of MSP is a part of our struggle towards ending the dominance of domestic and foreign monopoly capitalists on an important sector like agriculture. This is a part of our struggle to secure livelihood for the peasants and adequate availability of food at affordable prices for all the common people. The working class and people fully support this demand.
Comrades, we, the workers and peasants of the country, produce all the wealth of the country, we have to become the owners of all the means of production. The aim of our struggle should be to establish a new system that will ensure livelihood and prosperity for the majority of the population, the toiling masses, and not to increase the profits of a few parasites – the big domestic and foreign monopoly capitalists.