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Increased MSP, three-fold increase in fertiliser subsidies under Modi govt: Here is how the agriculture sector transformed in 10 years

Since 2014, the agriculture budget has increased five times. In 2013-14, the UPA government allocated Rs 29,687 crore to the agricultural sector. The interim budget for 2024-25 shows a rise to Rs 1.27 lakh crore.

Police are on high alert in the national capital. There is a traffic snarl-up on the roads in Delhi. The ordinary citizens are concerned. The situation arose from the ‘Dilli Chalo’ march. The alleged farmers from Punjab have left their farms and barns, clashing with police on the Haryana border, to make their way to Delhi.

The Prime Minister is being threatened in this drama going on in the name of agriculture and farmers’ welfare. There is planning to bring down Prime Minister Narendra Modi’s popularity graph. There are posters supporting Khalistan. Before the Lok Sabha elections, attempts are being made to destabilise the country in the name of farmers. These have the backing of opposition parties, including the Congress party.

The notion that this charade is more about politics than it is about the well-being of farmers is further bolstered by the way the Modi government has worked for the agriculture sector. In 2014, Narendra Modi took over as prime minister. The country’s budget for agriculture has grown by nearly five times since then. In the last ten years, food grain production has hit all-time highs. There has been a 62.5% increase in the minimum support price (MSP). The fertilizer subsidy has increased. Farmers are receiving direct financial support through initiatives like Kisan Samman Nidhi.

Simply put, over the ten years of the Modi government, a great deal of effort has been made to advance the welfare of farmers. On the ground, their effect is also evident. This explains why these attempts to cause ruckus in the name of farmers only have a limited impact. The common people do not support these so-called farmers.

Significant increase in MSP under the Modi government

The government pays farmers a price known as the Minimum Support Price (MSP) for their crops. Every harvest year, the government releases these prices. Punjabi farmers primarily cultivate wheat and paddy. Regarding their support prices, the national MSP for paddy was Rs 1310 (per quintal)and the MSP for wheat was Rs 1475 (per quintal)in 2014, the year Prime Minister Narendra Modi took office.

If we talk about the prices at present time, there has been a significant increase. For the crop season 2023-24, the government has kept the MSPs for paddy and wheat at Rs 2183 (per quintal) and Rs 2200 (per quintal), respectively. It used to be between Rs 1310 and Rs 1475 in 2014. In this case, when compared to 2014, the MSP for paddy has climbed by 66.6%, while the MSP for wheat has increased by around 50%. It is not true that the prices of only these crops have gone up. The government has focused on other crops as well.

In addition to paddy and wheat, the Modi government has boosted the MSP for other crops such as millet, maize, and pigeon peas. Since 2014, the government has increased the MSP for millet by a total of 106%. The price surged from Rs 1500 (per quintal) in 2014 to Rs 3180. In 2014, the MSP for Arhar dal was Rs 4300 (per quintal), but it has since raised to Rs 7000 (per quintal). That means the MSP has risen by 62%. This shows that the Central Government takes the issue of MSP very seriously. In the last decade, there has been an average growth rate of 62.5% in this direction.

Government procurement of crops increased by 30% under the Modi government

The Narendra Modi-led government has not only increased the MSP, but it has also steadily increased the number of crops procured at MSP rates. The Central Government’s report shows that in 2014-15, the government purchased 761 lakh metric tonnes of the crop at MSP. This figure has risen to 1062 lakh tonnes for 2022-24. This suggests that the country’s government procurement of crops increased by around 30% during this period directly benefitting the farmers.

Fertiliser subsidies tripled under the Modi government

In addition to boosting the MSP and purchasing additional food grains, the central government has focused on lowering farming costs. The central government has continually increased fertiliser and seed subsidies. According to a report, the central government provided farmers with fertiliser subsidies worth Rs 73,067 crore in 2014-15. By 2022-23, the figure reached Rs 2.54 lakh crore.

The country’s fertiliser production is expanding as fertiliser subsidies improve. If we look at urea production, it was 225 lakh tonnes in 2014 and has now scaled to 284 lakh tonnes. Moreover, Nano urea is also being produced in the country.

Fivefold increase in agriculture budget, Kisan Samman Nidhi also increased

Since 2014, the agriculture budget has increased five times. In 2013-14, the UPA government allocated Rs 29,687 crore to the agricultural sector. The interim budget for 2024-25 shows a rise to Rs 1.27 lakh crore. This demonstrates that the amount of money allocated to agriculture has increased by 436% during the last decade. In addition to raising the agricultural budget, the government has provided direct incentives to them through schemes such as Kisan Samman Nidhi. Every farmer receives Rs 6000 per year under this initiative.

Since February 2019, the government has directly deposited Rs 2.82 lakh crore into farmers’ accounts. More than 11 crore farmers in the country benefit from this plan. In Punjab, 8.5 lakh farmers benefit from this initiative.

Punjab derailed under Congress-AAP governments

Punjab is one of India’s major food-producing states. However, this picture has changed in recent years. According to data published by the Reserve Bank of India, food production in Punjab has not increased during 2017-18. This condition is extensively observed with Punjab’s key crops, rice and wheat.

It is worth noting that the Punjab government changed in 2017, with the Congress party beating the Akali-BJP alliance Following this, in 2022, the Aam Aadmi Party defeated the Congress. Both parties have been accused of mismanaging the state and misleading farmers.

Politics dominating farmers’ protests

This time, the farmers’ protest is being referred to as Farmers Movement 2.0. One of the issues emphasised last time was about farm laws. However, this time there is no such issue. The demands made by the farmer’s union are also vague. On the contrary, Khalistan supporters are raking up their outrageous demands exploiting the farmer’s protest.

From the same rally, farmer leader Jagjit Singh Dallewal issued a statement in which he discussed pulling down Prime Minister Modi’s graph. Following this comment, doubts are being asked as to what Prime Minister Modi’s graph has to do with farmers’ protests and demands.

The Modi government’s initiatives in the agriculture sector also demonstrate that the country’s farmers’ situation has undergone a significant positive change. In such a scenario, the prevalence of political motives driving the protest and efforts to achieve them cannot be dismissed.

Ayodhra Ram Mandir special coverage by OpIndia

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