Compared to increases in MSPs in 2008 for rabi crop, increase in MSPs in 2009 are negligible. While increase in wheat and gram was 8%, increase in MSPs of Masoor, mustard and safflower is almost nil.
While there is no index of cost of agri production, labour costs have skyrocketed thanks to NREGS and whole sales prices have increased by 8% on an average. Consumer price index applicable to rural areas also increased by 11%. Viewed from these increases in input costs and raise in index of consumption, the increase in MSPs does not even cover the increased costs and prices of consumption articles. Thus the Govt has reduced the incomes of farmers and make them sell their produce at a loss.
AND THE GOVT CLAIMS THAT THEY ARE FARMER FRIENDLY!!!

Farmers reject MSP hike

Punjab farmers have rejected the hike in the minimum support price for wheat announced by the Union Government. In a strongly worded press communication issued by the various groups of the Bhartiya Kisan Union, the farmers have condemned the Centre for having been unfair to them once again. The Centre had  announced an increase of Rs 80 in the MSP of wheat per quintal taking it to Rs 1,080.Balbir Singh Rajewal, president of his group in BKU, stated that the Centre had failed to take into account the rising cost of production. “The Centre has not calculated MSP scientifically which should be at least Rs 1,768 per quintal if calculated according to the recommendations made by the Swaminathan Committee,” he said.
He added that the Centre stood exposed in having refused to give constitutional status to the committee on agricultural cost and prices. “Since there has been a surplus produce, the aim of the Centre is to squeeze the farmer to keep the inflation low,” he said.
He said members of the BKU (Rajewal), BKU (Lakhowal) and BKU (Sidhupur) have condemned the “sick mentality” of the politicians and officials concerned.
Members of the BKU (Ekta) also stated that the Union Government’s decision on MSP was not acceptable. “The cost of production for a farmer has increased to Rs 1,000 per quintal and the MSP should be calculated according to this cost,” said the president, Joginder Singh Ugrahan.
Members of the Punjab Kisan Sabha associated with the CPI and CPM, Kirti Kisan Sabha, Kisan Sangharsh Committee and Kirti Kisan Union have also rejected the new MSP rates.
Meanwhile, Punjab Chief Minister Parkash Singh Badal today described the hike in MSP as totally inadequate and as “a stab in the back of the farmer community”. He demanded that the MSP of wheat should have been fixed at least at Rs 1,400 per quintal, saying that the Centre should have announced an increase of Rs 400 per quintal instead of only Rs 80.
In another statement, the Deputy Chief Minister, Sukhbir Singh Badal, said the central decision was an eye-wash. “This arbitrary decision on the part of the Government of India amounted to rubbing salt into the wounds of the beleaguered peasantry besides adding to their woes,” he said.
Tribune News Service 29-01-09