A ten day nation-wide protest [beginning June 1] by farmers that involves refusal to sell their crop to consumers and block movement to cities would suggest that they are in deep distress.
This is completely out of sync with what Modi – government as also the states ruled by BJP are doing to increase farmers’ income and provide them security. In this regard, major steps implemented by it during the last 4 years, may be put under three broad categories viz. (i) enhancing crop output; (ii) ensuring a good/remunerative price; (iii) providing insurance against natural calamities.
As regards (i), Modi – government has taken up on a war scale implementation of 99 irrigation projects aimed at reaching water to farmers’ fields in every nook and corner of the country. It has made a frontal assault on black-marketing of urea by making neem coating mandatory to render it unusable for any purpose other than for raising crop. It has given soil health cards [SHCs] to majority of 140 million farmers to ensure that fertilizers use as per soil requirement. It continues to subsidize urea [and all other fertilizers] to ensure that these are ‘affordable’. It has also made all out efforts to increase credit availability at subsidized interest rate.
On (ii), for 23 crops including wheat and rice, it has assured minimum support price [MSP] to cover the cost of production plus 50% of this towards profit. It is constructing rural roads on a massive scale and in such manner as to connect farmers’ fields with wholesale markets which are linked to national/export markets. It has created e-NAM [electronic – National Agriculture Market] platform to connect 585 regulated markets seamlessly thereby enabling them to discover and secure the best price. It has mooted reforms in the APMC [agriculture produce market committee] Act to give them better selling options.
As regards (iii), under Pradhan Mantri Fasal Bima Yojna [PMFBY] farmers are protected against natural calamities such as drought, floods, pest attack etc. By paying a meager premium of 1.5%/2% for rabi/kharif crops [5% for horticulture crops], they are covered for the entire loss of crop. The trigger for claiming compensation is 33% loss – against a threshold of 50% in earlier schemes. Further, unlike previous schemes wherein claim could be made only against crop loan taken from institutions viz. commercial/cooperative banks etc, under PMFBY, no such condition is imposed. The scheme makes extensive use of technology for determining the loss and releasing payments expeditiously.
The government has also implemented other steps to provide livelihood security and better living for tens of million poor which includes majority of small and marginal farmers besides landless laborers. The schemes such as PM Suraksha Bima Yojna [PMSBY], PM Jeevan Jyoti Bima Yojna [PMJJBY], Atal Pension Yojna [APY], National Health Protection Scheme [NHPS], PM Ujjwala Yojna, PM Saubhgya Yojna, PM Awas Yojna, Swachh Bharat Abhiyan etc deserve special mention. The all pervasive impact of these can be gauged from following.
Under PM Ujjwala Yojna, about 37 million poor families have got free LPG connection; the target is to increase it to 80 million. The target of reaching electricity to 18,000 villages [those were in darkness for seven decades since independence] was achieved last month. Under PM Saubhgya Yojna, 40 million homes are being electrified. Over 75 million toilets have been built under Swachchh Bharat. Under NHPS, 100 million families will get health insurance for Rs 500,000/- each thus implying coverage of 500 million persons [assuming 5 persons per family] or 40% of population. Inter-net connectivity to over 100,000 gram panchayats [village blocks] has been provided.
Despite the present dispensation doing so much and covering almost every aspect to improve farmers living, why are they so upset? Their leaders have put up four major demands viz. (i) giving them higher MSP and include all crops; (ii) give blanket loan waiver to all; (iii) make power available free of charge and (iv) guarantee a minimum income of Rs 18,000/- per month.
On (i), the government has already expressed its unflinching commitment to MSP and put in place measures to ensure it. As regards (ii), even as various states are giving loan waivers taking into account the local situation and indebtedness especially of small and marginal farmers, asking for this to be given to all farmers is untenable. This would mean granting waiver even to those who can afford to pay back and perpetuate a cult of non-payment. Besides, this would impose unsustainable burden on the exchequer.
As regards (iii), already, several states have invited serious financial trouble by either selling power free or near zero tariff. Now, to supply it free to farmers all over India is the surest way to turn power distribution companies [PDCs] bankrupt or throwing state budget into a tailspin if the latter foots the bill. An ideal scenario is one in which there is uninterrupted supply of at ‘affordable’ rates. This will strike a good balance between viability of PDCs and farmers needs but the latter are unwilling to yield.
Finally, (iv) may make sense if state support is in the nature of a ‘top up’ say Rs X to reach a threshold monthly income level. This will require all existing subsidies to go. If however, the intention is to give the entire threshold amount say Rs 18,000/- per month even when the recipient does nothing, this will be disastrous. Besides, denuding state exchequer, it will promote a culture of no work.
Even as Modi is responding in every possible way to help farmers and increase their income, the demands put up by their leaders are nothing short of muscle flexing. No wonder, union agriculture minister, Radha Mohan Singh has termed it as ‘publicity stunt’. There is merit in his assertion “the protest represents the voice of a mere 500,000 farmers or 0.35% in a total of 140 million”.
This may have political overtones as well considering that there will be general elections next year. If, that be so, then public including the vast majority of poor farmers should be ready to defeat the machinations of opposition parties to unseat Modi.