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Round 4 of talks: What has the Govt offered protesting farmers from Punjab?

The proposed new formula is for NCCF, NAFED, and CCI to buy at a contracted MSP for five years. How will this arrangement work, and what have the farmers said?

Farmers-protestsMembers of various farmers organisations are protesting against the central government on the third day of their protest at Shambhu in Patiala District on Thursday. (Express photo by Harmeet Sodhi)

During the fourth round of talks that ended early on Monday, the government presented a proposal for diversification into pulses, cotton, and maize, and assured the protesting farmers of minimum support prices (MSP) in these crops with no limitations on quantity.

First, what are the details of the government’s proposal?

Union Minister for Commerce and Industry Piyush Goyal told reporters that cooperative agencies of the union government, including the National Cooperative Consumers’ Federation of India (NCCF) Ltd and the National Agricultural Cooperative Marketing Federation of India (NAFED) Ltd, would procure maize and three pulses (arhar, urad, and moong), and the Cotton Corporation of India (CCI) would procure cotton at minimum support prices (MSP) recommended by the Commission for Agricultural Costs and Prices (CACP). Farmers would be offered five-year legal contracts by these agencies to buy their produce.

Goyal said this proposal had emerged out of brainstorming after the leaders of the farm unions raised various concerns at the meeting. He said farmer leaders had pointed to the increasing desertification in Punjab due to the drying up of water sources, which led to a discussion on crop diversification, and how the cultivation of pulses could reduce their imports, conserve water and help soil health in Punjab, and boost the income of farmers.

He said that farmers in Punjab had expressed interest in growing maize, but had raised concerns about potential losses if prices fell below the MSP.

What position has the Punjab government taken?

Punjab Chief Minister Bhagwant Mann, who joined the meeting of the farmers with the three Union Ministers, backed the proposal saying cultivation of pulses would reduce the dependence on imports. India imports pulses worth $2 billion from countries like Canada and Mozambique, and incentivising farmers to grow them could mark a very significant break, he said.

“I have been saying that if they could assure us MSP on pulses, we could cultivate them. It would be a historic moment, quite like the Green Revolution, which happened after the US declined to supply wheat to us. Our farmers are capable of growing maize and other crops, but diversification is feasible only if we are assured of an MSP.”

The Chief Minister said he had made it clear at the meeting that farmers would take up cultivation of other crops only if they were, like paddy, economically viable. The Union Ministers had addressed this concern saying government agencies like NAFED and CCI could buy from farmers, he said.

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And what did the farmer leaders say after the meeting?

Kisan Mazdoor Sangharsh Committee general secretary Sarvan Singh Pandher said discussions on the other demands of farmers, including debt waivers, had not taken place yet.

He said the farmers would take a decision on the government’s proposal after discussions in their forums, and with legal experts. They would need two days to make up their minds and announce their final decision. If no agreement was reached, the farmers would move towards Delhi on February 21, Pandher said.

Bharatiya Kisan Union (Sidhupur) leader Jagjit Singh Dallewal said that a guaranteed MSP from Government of India agencies was a “good proposal”.

Is the proposal likely to promote agricultural sustainability?

More than 73% blocks (117 out of 159) in Punjab are in the dark zone of the underground water table. There is a very urgent need to diversify out of the water guzzling paddy crop. Some 14 lakh tubewells across the state pump about 3,800 litres out of the ground to grow every kilo of rice.

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Given the massive challenge to conserve water, any diversification is likely to help the state, and any proposal in this direction should be taken up, feel some experts. A five-year window for farmers to switch to other crops can provide a new lease of life to the state, which is moving very quickly towards desertification.

Other experts flag that the proposed diversification would lead to a large chunk of the significant investments already made in farm equipment for paddy, going waste, while a new set of machines would be needed for the new crops.

Also, given that the protesting farmers have been demanding a legal guarantee on MSP for 23 crops, and that they would not shift away from paddy unless the alternatives are as profitable economically, the acceptance of the government’s proposal remains uncertain.

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  • Express Explained Farmers protests Minimum Support Price (MSP) Punjab
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