Food and Consumer Affairs Minister Piyush Goyal revealed on March 8 that the government has decided to guarantee a Minimum Support Price (MSP) for maize, pulses, and cotton for a duration of five years. This move, he stated, was prompted by concerns for farmers’ welfare and the dwindling levels of water.
Goyal emphasized that the MSP guarantee would particularly benefit farmers transitioning to diversified crops, such as lentils and maize, which require lower water consumption. He affirmed that this initiative would be rolled out nationwide.
A streamlined process has been devised by the government to implement this decision, including the creation of a portal where farmers must register and provide an undertaking regarding their crop diversification efforts.
Additionally, Goyal mentioned that registered farmers would have the option to sell their produce to NCCF, NAFED, and CCI. To verify crop diversification, satellite imagery and crop insurance data will be utilized by the government. Purchased pulses will be utilized to create buffer stocks, aimed at stabilizing pulse prices in the future.
The Decision’s Farmer-Centric Nature It’s noteworthy that farmers have been advocating for a consistent MSP during ongoing protests. Despite the government’s prior proposals of MSP for certain crops, which were rejected by protesting farmer organizations, Goyal affirmed that this decision is firmly aligned with farmers’ interests.
Government’s Concern Over Declining Water Levels
The government’s alarm over declining water levels in various regions is a driving factor behind this decision. According to the 2017 Dynamic Groundwater Resources Assessment of India report, the groundwater situation in Punjab is particularly concerning, with the majority of blocks experiencing deterioration. This has led to increased costs of groundwater extraction for small farmers, prompting a shift towards crops with lower water requirements.
Moreover, the government sees potential in maize cultivation for ethanol blending purposes. With a target of achieving 20% ethanol blending by 2025, the government aims to reduce reliance on crude oil imports, promote renewable energy sources, and mitigate vehicular pollution. Furthermore, expanded cultivation of pulses is seen as a means to reduce dependency on imports in this sector.
