On the 13th, Congress leader Rahul Gandhi promised to enact a Minimum Support Price (MSP) guarantee law if his party comes to power in the 2024 Lok Sabha Elections. For some, it may sound like an appealing strategy, especially to the farming community, which has been marching towards Delhi demanding the same. However, delving deeper into the economic realities reveals the sheer impracticality of such a proposal. It is easy for political leaders to make tall promises before elections, especially to those who belong to a party or an alliance that has already accepted defeat. But promises have to be made only when they can be fulfilled. In the case of the MSP Guarantee Law, it is practically impossible.
किसान भाइयों आज ऐतिहासिक दिन है!
— Rahul Gandhi (@RahulGandhi) February 13, 2024
कांग्रेस ने हर किसान को फसल पर स्वामीनाथन कमीशन के अनुसार MSP की कानूनी गारंटी देने का फैसला लिया है।
यह कदम 15 करोड़ किसान परिवारों की समृद्धि सुनिश्चित कर उनका जीवन बदल देगा।
न्याय के पथ पर यह कांग्रेस की पहली गारंटी है।#KisaanNYAYGuarantee
Let us break down the numbers to understand why it is not feasible for any government, whether it be the current BJP-led government of India or in case any other party that rules the Centre. India’s agriculture sector makes a significant contribution to the GDP. The total agricultural produce value stands at around Rs 40 lakh crores as per FY20. This includes everything, including farming, dairy, horticulture, livestock, etc. The farming output is around Rs 10 lakh crores.
Of this, only Rs 2.5 lakh crores is procured as MSP covering 24 crops. It represents only 6.25 per cent of the country’s total agricultural output or 25 per cent of the total farming output. If we enact a universal MSP law, that would inflate this figure exponentially. In short, the government of India will be required to fetch out at least Rs 10 lakh crores annually just to fulfil the promise of MSP. It is not a small amount, considering India has set aside a budget of Rs 11 lakh crores for infrastructure in the recent interim budget.
Those who demand and propose MSP guarantee law fail to address one fundamental question: where will this exorbitant amount of money come from? The implications of such spending will be dire and potentially lead to a significant drop in the government’s spending in crucial sectors, including defence. Furthermore, it will increase the taxation burden on the common citizen, which is already under much pressure.
Moreover, this notion of MSP is economically unfeasible and backed by politicians with vested interests. The promise made by Rahul Gandhi is pure opportunism, especially considering the timing as Lok Sabha elections are just months away. This promise can only be a manipulation tactic to change public sentiments and nothing else.
The repercussions of blind commitments are not limited to just the agriculture sector. It will threaten the economic stability and risk the country’s growth. It has to be noted that the political dimensions of the farmer protests cannot be ignored. Congress party has shown that it is directly involved in these protests, operating from the shadows. The promise of MSP may give momentary gain, but it will sacrifice long-term economic stability.
Investigative journalist Vijay Patel recently published a thread and a video explaining how farmer union leaders were in contact ahead of the farmer protests and proudly discussed “coming days” in social media posts that they discussed with Congress Party leaders. For example, in a social media post, Ramandeep Singh Mann wrote that he met Deependra Hooda and had a “meaningful conversation about the coming days”. Other names appeared on the list, including a Congress leader, Guramneet Mangat, who became a professional farmer protester.
Exclusive and explosive:
— Vijay Patel🇮🇳 (@vijaygajera) February 13, 2024
Congress is behind this #farmerprotests2024 and they want regime change protests which can lead to civil war.
Save this video and share it maximum on all SM platforms pic.twitter.com/ygSOBAOuVg
Adding fuel to the fire, the Aam Aadmi Party has shown zero interest in controlling the protesters and gave a freeway in Punjab to those who were marching towards Delhi. AAP categorically told Punjab and Haryana High Court that will not stop anyone from marching towards Delhi, of course adding “while maintaining law and order”. Furthermore, the AAP-led Delhi government refused to turn a stadium into an open jail, which was requested by Central government, claiming the demands of the farmers were genuine.
Punjab govt counsel: The issue is they are proceeding for protest, not collecting in Punjab. There is no sealing in Punjab. If they want to proceed for peaceful protest… we are allowing it and apt arrangements are made for crowd control, etc.#FarmersProtest2024
— Live Law (@LiveLawIndia) February 13, 2024
In the farmer protests 1.0, AAP played a significant role in fueling the protests. Delhi government under AAP provided amenities, including water supply and free WiFi, at protest sites and openly instigated farmers against the central government. All is being done just to earn some brownie points. Not to forget, the Punjab government itself lathi-charged protesting farmers in their state and ignored their plea a few months back. However, when the attack is on the central government, they pose as if they are the messiah of farmers.
It is essential to note that MSP has significantly increased since the Modi government came to power in 2014. In a reply to OpIndia’s RTI, the Government of India informed that the MSP of wheat per quintal was increased from Rs 1,350 in 2013-14 to Rs 2,015 in 2022-23. Similarly, in the case of wheat, MSP jumped from Rs 1,350 per quintal in 2013-14 to Rs 2,105 per quintal in 2022-23. Modi-led government ensured a significant increase in farmers’ income, but the protesting farmers themselves have ignored this fact.
In essence, the promise of an MSP guarantee law is just a mirage. It is a political illusion disguised as farmer welfare. The short-sightedness of the political parties in the opposition is aimed only at political gains, and they are not bothered about economic prudence and national interest. It is essential for the policymakers not to succumb to the populist rhetoric and adopt a holistic approach that addresses the root cause of the distress faced by the farmers while ensuring the national fiscal health is on the right track. Anything less will be an economic suicide and betrayal of the electorate’s trust.
