Haryana's Bold Move: MSP for All Crops, Farmer Relief

Expansion of Minimum Support Price (MSP) Coverage

• Haryana becomes the first state to procure all crops at MSP
• Previously covered 14 crops, now expanded to include 10 more
• New additions include ragi, soybeans, jowar, moong, barley, maize, jute, khopra, and others
• Total of 24 crops now under MSP procurement in Haryana
• Aims to stabilize market prices and ensure constant income for farmers
• Promotes crop diversification and agricultural stability

Financial Relief Measures for Farmers

• Waiver of 'Abiana' (canal water irrigation charges)
• Rs 133 crore in outstanding irrigation charges to be waived off
• Annual benefit of Rs 54 crore to farmers from this waiver
• Abolition of 'Abiana' effective from April 1, 2024
• Commitment to pay Rs 137 crore in pending compensation for natural disasters
• Compensation to be disbursed within a week
• Expanded options for farmers to purchase three-star motors for tube-wells

Political Context and Implications

• Announcements made ahead of upcoming Haryana Assembly elections
• Response to BJP's recent poor performance in Lok Sabha elections
• Vote share dropped from 58% in 2019 to 46% in 2024
• Congress gained support, winning 5 Lok Sabha seats
• Attempt to regain popularity among farmers and rural voters
• Chief Minister urges BJP workers to engage with citizens and highlight government achievements
• Aims to secure a third consecutive term in office

Minimum Support Price (MSP) in India

• MSP is a government-set price for 23 crops, including cereals, pulses, and oilseeds, established in 1966 to protect farmers from price drops.
• It is crucial for agricultural stability, encouraging production and food security.
• Implementation varies by region, and critics argue it may lead to overproduction.
• MSP influences farmer incomes and market prices, which influences agricultural policy.
• It incentivizes farmers, ensuring adequate food grain production and supporting the food security programme through the Public Distribution System (PDS).
• Procurement price is a higher price than MSP, announced soon after harvest.
• The MSP is announced at the beginning of the sowing season based on the recommendations of the Commission for Agricultural Costs and Prices (CACP).
• The MSP indirectly affects farmers' decisions regarding land allocation and quantity of crops to be produced.
• The government's agricultural policy consists of three components: MSP, Buffer Stocks, and issue of food grains through the Public Distribution System (PDS).