Haryana’s MSP guarantee for all crops sparks debate

The Nayab Saini-led Haryana government’s recent announcement to procure all 24 notified crops at Minimum Support Price (MSP) just two months before the assembly elections has ignited a debate. This move raises significant questions about why other states, particularly Punjab, are not adopting similar measures in the interest of farmers, where hundreds of farmers have been […]

by Neeraj Mohan - August 12, 2024, 6:54 am

The Nayab Saini-led Haryana government’s recent announcement to procure all 24 notified crops at Minimum Support Price (MSP) just two months before the assembly elections has ignited a debate. This move raises significant questions about why other states, particularly Punjab, are not adopting similar measures in the interest of farmers, where hundreds of farmers have been protesting at the Punjab-Haryana borders, demanding MSP guarantees since February 13.

Even Haryana is already ahead, being the only state to procure several crops beyond wheat and paddy, including bajra, sunflower seed, maize, and mustard. However, the new announcement to include all 24 crops on MSP could have substantial financial implications, necessitating additional allocations of around Rs 125 crore, as there were no provisions made in the state budget to support this move.

Farmer leaders in Haryana remain skeptical about the sudden announcement. In June last year, sunflower growers had to block GT Road at Kurukshetra for nearly two days to compel the then Manohar Lal Khattar government to start sunflower seed procurement at MSP. Farmers have also repeatedly protested against conditions imposed on procurement, such as the mandatory registration on the Meri Fasal Mera Bayora e-portal to sell produce at MSP.

The announcement now includes the procurement of all 24 crops: wheat, paddy, ragi (Eleusine coracana), soybean, kala seed (fennel), jute, khopra (copra), moong, niger seed, surajmukhi (sunflower), jaun (barley), jowar (sorghum), mustard, gram, maize, bajra, cotton, peanut, tur, urad, and sesame across 370 grain markets in Haryana. However, Haryana does not produce eight of these crops, including peanut, fennel, soybean, jute, khopra, ragi, and niger seed.

According to the state agriculture department, Haryana has a cultivable area of 3,694 hectares, with a net sown area of 3,351 hectares.

Experts have criticized the announcement as impractical. Dr. Virender Singh Lather, Former Principal Scientist at ICAR-IARI New Delhi, stated, “Haryana’s nod to purchase 10 more crops, including jute, khopra, soybean, and niger at MSP, is a misleading announcement. The procurement of crops not cultivated in Haryana is impractical and creates opportunities for corrupt marketing benefiting middlemen and state bureaucracy. This scam is already practiced in Haryana for paddy procurement, where state procurement often exceeds actual production.”

Dr. Lather further explained, “The declaration to purchase additional crops at MSP without Central Government permission will create financial and administrative problems since MSP procurement is primarily a Central Government mandate. This announcement appears to be an election gimmick to please middlemen and mislead farmers.”
Leader of the Opposition and former Haryana Chief Minister Bhupinder Singh Hooda labeled the Saini government’s announcement another attempt by the BJP to “mislead farmers.” Hooda, who also chaired the Working Group on Agriculture Production under the Manmohan Singh Government, termed the announcement a poll gimmick and a trap for farmers. He asserted, “The decision to procure at MSP is made by the Centre, and the state government has no authority to make such announcements. The Centre must provide a legal guarantee on MSP to farmers.”

Farmer leader from Haryana Gurnam Singh Charuni hailed the decision but questioned the basis of the announcement in the absence of a law and budget allocations to guarantee MSP on these crops.

As Haryana heads towards elections, the practicality and implementation of this MSP announcement remain contentious issues, with many viewing it as a political maneuver rather than a genuine solution to farmers’ challenges.

Agriculture and food policy expert Devinder Sharma commented, “With elections around the corner, this announcement is seen as a political gimmick. The implementation will require extensive planning and infrastructure, and the state government must manage procurements independently.”

On being contacted Balwinder Singh Sidhu, former Commissioner  Punjab Agriculture Department, said, «If the state government desires, it can procure crops on its own, but it requires budget allocations. Other states have procured crops without Central assistance. However, Punjab›s financial health is poor, making it difficult for Punjab to take such steps without Central help.»