Market analyst Deepak Talwar says interests of farmers India-wide not homogenous
- By NewsOnFloor Staff
- Dec 10, 2020
- 1029 views
A top market analyst has said that a group of farmers, who seem to think they can drive society in the direction they want because they have the Opposition on their side, could end up fruitless.
Seasoned market analyst Deepak Talwar said that the tough method adopted by PM Narendra Modi and his trusted Home Minister Amit Shah during the anti-Citizenship Amendment Act (CAA) movement showed disruptors would not be able to thrust their agenda despite rioting and protests like the one at Shaheen Bagh.
“There could be some nominal concessions here and there but I sincerely hope that the government won’t let Punjab farmers veto the long-pending farm reforms from being implemented nationally,” says Talwar.
Talwar said that a serious analysis of the numbers will explain everything. In the post-Rabi harvest season, government agencies procured 382 Lakh Metric Tonnes (LMT) of wheat at Minimum Support Prices (MSP). Now, 86 percent of this procurement was from just three states Madhya Pradesh (129 LMT), Punjab (127 LMT), Haryana (74 LMT). “But ironically, these states are not the biggest producer of wheat.”
Talwar said that Punjab’s farmers produced 175.6 LMT of wheat this year and brought 127.62 LMT to mandis and sold 127.12 LMT at MSP, i.e. 99.9 percent. Now Madhya Pradesh produced 336 LMT, over 90 percent more than Punjab. MP kept 200 LMT for the state’s consumption and sold 129 LMT at MSP. “So 72 percent of Punjab’s total wheat produce was sold at MSP, the figure for MP was 38 percent. Last year, it was less than 20 percent. MP has emerged as a major wheat producer in recent years. It also shows the MSP system is being established slowly.
“So if the agitation continues, farmers of MP will also start bringing most of their produce to mandis like Punjab’s farmers,” says Talwar.
He said that the farmers in Uttar Pradesh produce almost one-third of India’s wheat but only 32 LMT of its wheat (around 10 percent) is procured at MSP. Rajasthan farmers produce around half the wheat Punjab farmers do but their procurement at MSP is only 19 LMT - more than six times less than Punjab’s farmers.
“So what we are seeing is that the interests of Punjab’s farmers are not aligned with those of farmers in other states. So, this disinformation that this is a protest championing the cause of all farmers should stop. The Indian government spent Rs 73,500 crore for MSP procurement of wheat this year. Given that Punjab’s share out of this was over 33 percent (while the share in total India’s wheat production was around 17 percent), Punjab’s farmers took Rs 25,000 crores when their fair share comes to half of that.”
Talwar said that over 90 percent of the farmers don’t benefit from the MSP regime. The government cannot allow a small irrational group to hold the interests of crores of farmers ransom.
“It is time the government stops food subsidy, running the PDS system, procurement/storage costs, fertilizer subsidy. Let agriculture be a state subject and let the states decide what is best for them,” says Deepak Talwar.
Source : NewsOnFloor