The BJP government is all set to announce its last budget before the elections 2019 come in place. This year, BJP is likely to focus the budget on farmers. In fact, there is also news about the government likely to announce several schemes for ensuring income support to Indian farmers.
The budget for 2018-19 who is also quite farmers centric where in Arun Jaitley the then finance minister had have spent a significant amount of time talking about Farm sector and had also ensured that farmers’ incomes will increase.
2018-19 Budget had promised that farmers will see 50 % higher crop prices as compared to the cost of production and new scheme would bring more farmers and the procurement net would see a rise.
As promised, there was an increase in the minimum support price of kharif crops. Pradhan Mantri Annadata Aay Sanrakshan Abhiyaan, or PM AASHA was rolled out in September to ensure that more farmers receive support price for whatever they produce.
Government agencies under the scheme, buy pulses and oilseeds from farmers if and when the market price falls even below the support price. Moreover, the government also reimburses the difference between the MSP (minimum support price) and market price in some states of oilseeds to farmers if the market price is lower than the support price.
Despite all this along with the government buying 5.9 mn tns of oilseeds and pulses at MSP, all pulses and most oilseeds prices are still lower than the support prices.
As per the data by Cogencis, out of the 14 key kharif crops whose MSPs were increased, the prices of nine are well below the respective MSPs.
Take a look at the table which shows the kharif crops MSP as announced by the government, mandi prices and the difference:
Source: Cogensis
Image Credit:Financial Express