Why do farmers go marching?

Why do farmers go marching?

Context

Why are Indian farmers perpetually in revolt? The question has been raised by many after the recent farmers’ march to Mumbai and simmering rebellions across the States in recent years.

Changing reasons for agricultural distress

Earlier:  deficient monsoons, input shortages and low yields

Now: surplus output and un-remunerative prices, e.g. in case of Wheat, rice, pulses

Same old problem of Infrastructure: Shortage of Storage facilities

Poor storage facilities and State laws that keep farmers bound to their local mandis, have exposed farmers to wild swings in prices

Hike in MSPs by the Centre as well as the State governments

• In the last ten years, the support prices for wheat and paddy have risen 73% and 108% and those on pulses have trebled
• In recent years, State governments have also competed furiously with the Centre, announcing bonuses and their own support prices for crops such as onions, tomatoes, potatoes and even green chillies.

Market prices for many crops stay below their official MSPs for extended periods

• Though the Centre announces MSPs for 24 crops, the bulk of its procurement operations (via FCI) are restricted to just two — rice and wheat, with NAFED chipping in on pulses
  • State-level procurement operations are even more adhoc, lacking both direction and funding
  • No guarantee of getting the promised MSPs:Therefore, while a farmer may plant mustard, grapes or onions in any given year based on the MSP promise, there’s really no guarantee that he will get that price when he visits the mandi.
• Market interventions by the State and the Centre tend to be too selective and sporadic to make any real difference to a majority of farmers
• Given that the Centre’s market interventions on rice and wheat have proved so ineffectual despite large spends, it is unclear how the Centre or copycat States will fund MSPs in a host of other crops.

Sizeable imports irrespective of abundant supplies

In the last couple of years, despite supply gluts, the Centre has continued with sizeable imports of wheat and pulses at low tariffs.

Conclusion

All this makes it clear why Indian farmers are seething. It’s for the same reason that salaried employees are often unhappy