Mahayuti tries to stem farmer unrest; too little too late, say farmer leaders

MUMBAI: Among other reasons for the defeat of the Mahayuti alliance in the Lok Sabha election was the unrest among farmers on account of the dip in the prices of crops like soyabean, onion and cotton. The state and central governments have taken corrective steps but experts say these will not help much.
The state government, early this week, released ₹4,111 crore compensation to over 9 million soyabean and cotton farmers for their losses in the 2023 kharif season owing to the drop in prices below the minimum support price (MSP). The Centre too, on the request of the Maharashtra government, scrapped the minimum export price mandate of $550 a metric tonne and halved the 40% export duty imposed in May. It also increased the customs duty on the import on soyabean, palm and sunflower oil by 20%.
The steps were taken after the ruling parties realised that the central government decision had a bearing on the prices of onion, soyabean and cotton. Maharashtra is the largest grower of onions and second-largest grower of soyabean, producing 24.75 lakh MT of onion and 73 lakh MT of soyabean.
The Mahayuti, which won only 17 of 48 LS seats, lost both seats in Nashik, where the majority of onion farming happens. It won only one of eight seats in Marathwada and four of 10 in Vidarbha, regions that are dominant in soyabean and cotton farmers.
Both deputy chief minister Devendra Fadnavis and CM Eknath Shinde accepted that farmer unrest cost the ruling alliance dear. Shinde said the state government had now taken corrective steps. “We requested the central government during the NITI Aayog meeting last month to ensure remunerative prices for farm products,” he said. “The tweaks by the central government will help raise crop prices. We are ensuring that soyabeans are purchased at minimum support price (MSP) speedily.” Shinde added that apart from MSP, cash benefits like PM-Kisan, Ladki Bahin Yojana and the waiver of agri bills would reduce farmer distress.
The ruling alliance expects the recent steps to help it in the forthcoming assembly polls. However, according to an official from the agriculture department, soyabean prices are expected to fall further due to a bumper crop in other countries. “The high soyabean production in Argentina, US and Brazil has already resulted in a drop in the global price of soyabeans,” he said. The 20% rise in custom duty on oilseeds will help maintain the market price of ₹4,400 but it is unlikely to go up to the MSP of ₹4,892 a quintal, as the production in other countries is expected to grow in the coming months.”
The officer said that the central government had assured farmers that it would buy 1.5 million metric tonnes at MSP, but that was less than 20% of the entire stock. “Besides, there is additional stock with farmers and business houses that could come into the market,” he said. “A further fall in prices may result in farmers going against the ruling alliance in the assembly polls.”
Farm expert Vijay Jawandhia said that the farmers had realised that corrective steps were taken by the governments only after they slipped in the Lok Sabha polls. “A further course correction will come only if they are taught a lesson one more time in the assembly polls,” he said.
Jawandhia said the steps by the Centre would not help farmers to recover even their input cost. “Farmers spend ₹20,000 an acre for soyabean production, excluding labour charges, and produce 5 quintals per acre,” he said. “The existing market rate does not permit them to recover this input cost. The government only talks big about doubling farmers’ income and 50% profit on the input cost.”
Ajit Nawale, national joint secretary of the Akhil Bharatiya Kisan Sabha, said that the governments’ steps were a case of too little too late. “The relaxation on export of onions will not help farmers bid in the international market at a competitive rate, as the prices of other countries will be less,” he said. “The steps are unlikely to help in the assembly polls, as farmers will not get any benefits immediately.”