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This is an archive article published on September 22, 2024

‘Centre should announce 20 % bonus above MSP for cotton and soyabean’: Farmer leader Vijay Jawandia

The centre-state initiative to pull farmers from financial crisis will require long term reforms adequately backed by generous subsidies, farmer leader Vijay Jawandia tells Shubhangi Khapre in an interview.

farmers cotton mspWhy cannot Centre announce 20 per cent bonus above MSP for cotton and soyabean, the farmer leader asked. (File photo)

The centre-state initiative to pull farmers from financial crisis will require long term reforms adequately backed by generous subsidies, farmer leader Vijay Jawandia tells Shubhangi Khapre in an interview.

Will Centre’s decision to raise customs duty on crude and refined edible oil help farmers in Maharashtra?

The basic custom duty on crude soyabean, palm oil and sunflower has been hiked from zero to 20 per cent, making the effective duty on crude oils to 27.5 per cent. Similarly, basic duty on refined palm oil, sunflower oil and soyabean oil has been raised from 12.5 per cent to 32.5 per cent, which makes the effective duty on refined oils at 35.75 per cent. This is good measure certainly but not enough to make farmers financially prosperous.

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In the Lok Sabha polls, one of the factors that led to the debacle of BJP-led Mahayuti was the unrest among farmers, especially soyabean, cotton and onion cultivators…

I agree. There is still huge unrest among farmers. It is likely that decisions to raise duties on crude and edible oils is to address falling prices of soyabean and cotton ahead of the arrival of fresh kharif crops in October 2024. With hike in duty rates, it may help steady the prices taking it closer to MSP rates.

Are you saying farmers will get rates close to MSP? Not huge remuneration?

Exactly. When farmers get MSP for their crop, it is base price for the farm produce. It is not higher remuneration as is being perceived. A few years ago, soyabean farmers fetched upto Rs 9,000 and cotton farmers Rs 12,000. This time, the farmers are unlikely to cross MSP mark which is Rs 4,892 and cotton growers Rs 7,000 to 7,500.

What are the reasons?

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The prices of soyabean and cotton are adversely impacted by the rates in international market. Soyabean prices are often regulated based on demand and supply of de-oiled soya cake ( DOC), which is used essentially for cattle feed and poultry feed. The government does not want to antagonise the poultry sector by raising price of soya DOC. Unless you raise rates of DOC, soyabean rates will not increase. So, when it comes to farmers versus industry, farmers are always at the receiving end.

What about cotton farmers?

From the current trend globally I don’t see farmers fetching more than MSP (Rs 7,100 to 7,500) for cotton. It is a wishful thinking that course correction on duty rates will boost prices of soyabean and cotton.

State government has recently announced a PM MITRA Park in Amravati to help cotton farmers?

Prime Minister Narendra Modi, during his Wardha visit, announced five F — Farm to Fibre to fabric to fashion to foreign. It was used by him during Vidarbha tour in 2014 too. What has transformed in 10 years? The farmers are still in financial distress. The farm suicides continue in Vidarbha region.

But farmers are getting Rs 12,000 annual money from centre-state?

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If these annual funds were adequate, why are farmers struggling? The investment expenditure has increased manifold. They also face recurring climatic challenges, which cannot be quantified nor commensurate to one-time financial help.

What is the solution?

Why cannot Centre announce 20 per cent bonus above MSP for cotton and soyabean. My point is Centre has given huge subsidies for sugar sector. Why can’t it be done for soyabean and cotton farmers of Maharashtra.

How long will subsidies help to make farmers self reliant?

There is no other way. If development nation like United States is pumping billions to empower farmers and agriculture sector, why shouldn’t India? Here we have almost 78 per cent farmers who come under small and marginal category.

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