From MSPs To Agricultural Reforms, The Many Challenges Facing Shivraj Singh Chouhan

Chouhan seems to have the credentials to bridge the trust deficit that resulted from the government’s heavy-handed handling of the farmers’ agitation. Agriculture economist Ashok Gulati has hailed him as an “appropriate choice” for the ministry as he is “passionate” about agriculture. Madhya Pradesh’s annual average agri-GDP growth between 2005-6 and 2023-24 was 6.8%. Chouhan presided over this growth; he was chief minister from end of November 2005 till December 2023, except for 15 months in between when Congress leader Kamal Nath was chief minister.  Agricultural growth in India is much more poverty reducing than growth in other sectors. According to Gulati, only Gujarat under Chief Minster Narendra Modi had such an inclusive growth model.

When Chouhan was chief minister, MP’s cropping intensity increased by more than 50%. Farmers were able to take more crops from their fields because of better irrigation. Irrigated area increased due to better maintenance of canals, new investments and completion of last-mile projects. But much of the irrigation was groundwater based. Power connections to tube wells more than doubled.

Under Chouhan’s leadership, the state’s contribution to the country’s total wheat procurement rose from 0.78% in 2007-08 to 27.8% in 2023-24. The network of procurement centres was expanded and whatever wheat farmers offered for sale, was procured as minimum support prices, and often, with an extra incentive. Favourable weather played a part. Good rains in the kharif season meant better moisture in the rabi season, encouraging wheat production, a largely risk-free crop. Whenever rains were deficient, farmers grew chickpea, another significant crop. Chouhan also ensured that cooperatives made fertiliser available when needed on interest-free credit, which could be repaid after harvest. 

As union minister, Chouhan will have to steer policies to ensure food and nutrition security to 1.4 billion people while assuring farmers of remunerative prices. Farmers wants legal backing for minimum support prices (MSP), or prohibition of even private purchases at less than support prices. They also want MSP to be 50% more than comprehensive cost and all crops to be covered, not just wheat and rice. The Indian National Congress in its Lok Sabha election manifesto had supported this demand. 

The maximalist demand of the farmers cannot be conceded. Should farmers resume their agitation, Chouhan has the credentials to negotiate a compromise, but will a PM who denied him a fifth stint as CM despite him leading the BJP to victory in the Assembly elections, back him?

Indian agriculture also needs new technologies for climate resilience and higher productivity. Gene technologies need to be deployed to harness the genetic potential of seeds and to make crops resilient to weather stresses, pests and pathogens. Chouhan as chief minister did little in this direction. Madhya Pradesh, for instance, is the largest producer of soybean but the crop’s productivity has been flat. Off patent genetic technologies are available abroad for herbicide tolerance in soybean—which enables dense planting—but India will need to address the concerns of the technology providers. A change in the policy outlook towards genetic technologies that has taken place in the past two years will help. The government has approved the cultivation of genetically-modified (GM) mustard. It has been held up in the Supreme Court. The government policy on gene editing is liberal.

The three laws which the government repealed in 2021 were necessary to make agriculture market oriented. With tweaks, and after winning the trust of farmers, Chouhan could reintroduce them or persuade states to legislate them. The model leasing law drafted by NITI Aayog needs to be adopted by more states for farms to be of economic sizes and to enable those who can’t cultivate or don’t want to, to rent out their plots without fear of losing title. 

The reform of the input subsidy regime is a crying need. Farmers should be given income support instead so that waste of earth-warming resources is minimised. 

There are too many people engaged in agriculture. Their numbers have increased after the reverse migration that took place during the pandemic. Rural wages have been stagnant. 

In short, Indian agriculture needs to be overhauled. But achievement depends on the chemistry between Chouhan and the PM.