As protests rage, Centre and farmer leaders discuss ways to cut cost, hike MSP

Centre assures to slash production cost

While the farmers want MSP to cover the input cost of the capital and 50 per cent of the profit (also known as the C2+50 formula) from the harvest, as recommended by the Swaminathan Commission, the Centre has assured the former that it will take steps to reduce the cost of production in the coming days.

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At a meeting with representatives of farmers’ organisations on December 7, Union Finance Minister Nirmala Sitharaman assured them that the Centre is looking at the possibility of removing Goods and Service Tax (GST) on seeds, fertilisers, tractors and other input costs to reduce the cost of farming. This has been one of the primary demands of different farmers’ organisations for a long time.

Farmers want MSP to cover land rent, wages

“During the meeting, we told the finance minister that there is a need to implement C2+50 formula because the current MSP on produce is not enough for farmers and does not meet the cost borne by farmers. We want the government to include costs like rent on land, wages for farmers and family members involved in farming while calculating the MSP,” Dharmendra Malik, national spokesperson of Bharatiya Kisan Union (Arajnaitik), told The Federal.

Malik was part of the 19-member delegation that met Finance Minister Sitharaman in a meeting that lasted for more than three hours.

Malik said farmers have also called for immediate intervention of the Centre in situations where farmers are forced to sell their produce below MSP.

Consider gradual hike of profit margin: Farmers tell Centre

“We have also suggested that since the government cannot guarantee calculating MSP based on the formula suggested by the Swaminathan Commission, the Centre should at least consider calculating the MSP on cost of production and 10 per cent profit. The Union government can increase the profit margin of 10 per cent every year or in two years – in the first year, it could be the cost of production and 10 per cent of profits and in the second year it could be increased to 20 per cent of profit. The government can consider gradually increasing the profit margin,” Malik said.

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During the discussion, farmer leaders also demanded the Centre to include all types of agriculture including horticulture, dairy and apiculture.

Demand to review populist schemes

Farmers’ organisations have also unanimously demanded that the Union government reviews its PM-Kisan Samman Nidhi scheme, which gives Rs 6,000 in the accounts of farmers, and the ambitious Pradhan Mantri Fasal Bima Yojana or the crop insurance scheme.

Farmers have demanded the stipend of Rs 6,000 to be increased to at least Rs 12,000 annually while urging the Centre to consider giving money to small farmers so that they can pay the premium of the crop insurance scheme.

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“We have told the government that the annual amount of Rs 6,000 is not enough and it should be increased to Rs 12,000 and that the government should pay the premium of the crop insurance scheme to make it more beneficial for farmers. At the moment, most farmers feel that the crop insurance scheme does not work in favour of the farmers and they do not benefit from it,” added Malik.

In their conversation with the union government, farmers have also demanded easy soft loans at one percent interest rates.

Signs of divide

Betraying a possible divide among farmers, some protesting farmers, have accused those holding talks with the Centre of being titled in favour of the government.

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“For the past 16 days, the farmers have been protesting on the Haryana-Punjab border but there has been no move by the government to hold any discussions. While there are groups and organisations of farmers that are meeting the Union government, it is difficult to say how many suggestions the latter will consider,” Ramandeep Singh Mann, a farmer leader, told The Federal.