Agricultural economist Ashok Gulati had pitched Madhya Pradesh, one of the largest producers of wheat, as a model for the rest of the country. Six months later, the state is in the midst of its worst farmer unrest in years that has left five people dead. What’s changed?
The state’s move to produce more fruits and vegetables over the last four years has not been backed by adequate infrastructure for these perishable commodities, said Gulati, the Infosys chair professor for agriculture at Indian Council for Research on International Economic Relations. A year of bumper crops has led to a crash in prices, especially for onions which were selling at Rs 1.50 per kilogram, less than half of what it costs farmers to produce.
The Chief Minister (Shivraj Singh Chouhan) has announced that they will buy onions from the farmers at Rs 8/kg now. But if he had announced even Rs 6/kg a month ago, this situation would not have come (to this).Ashok Gulati, Infosys Chair Professor For Agriculture, ICRIER
Farmers in western Madhya Pradesh have been protesting since June 1, demanding a farm loan waiver and higher minimum support prices. Police firing during violence left five farmers dead on Tuesday.
The demand for farm loan waivers spread after the Bharatiya Janata Party’s government in Uttar Pradesh announced a Rs 36,000-crore waiver, fulfilling an election promise by Prime Minister Narendra Modi. Telangana followed, and Maharashtra too agreed to waive farm loans worth Rs 30,000-crore last week.
Gulati said this fuelled the farmer agitation in Madhya Pradesh, and it will spread to other states.
Peasants are watching all over. In Punjab, all the political parties had promised a loan waiver when they went for election and now that they are in power, farmers are asking why don’t you fulfill your promise. This will spread at least 4-5 more states and the minimum bill will not be less than Rs 100,000 crore, so that adds to it.Ashok Gulati, Infosys Chair Professor For Agriculture, ICRIER
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