Key demands include:
Removing the 25% procurement cap on major crops under the Price Support Scheme.
Providing wage employment and undertaking water conservation works under the rural employment programme.
Increasing budgetary support for micro-irrigation equipment and intercropping seeds.
Rationalising fertiliser prices and subsidies.
Implementing the Khet Bachao Abhiyan from October 22 to 30, in collaboration with agricultural institutions and universities.
Background
What is MSP?
Minimum Support Price is the price announced by the Government of India for selected agricultural commodities to protect farmers against excessive price declines.
The Union Government announces MSP for 22 mandated crops, in addition to the fair and remunerative price for sugarcane.
The Commission for Agricultural Costs and Prices (CACP) recommends MSPs for mandated crops.
The Cabinet Committee on Economic Affairs approves MSPs.
MSP announcement does not mean that the government legally guarantees procurement of every crop from every farmer.
What is the Price Support Scheme (PSS)?
It operates under the umbrella of the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA).
It facilitates procurement of notified pulses, oilseeds and copra at MSP when market prices fall below MSP, subject to prescribed conditions and operational limits.
The article reports a request to lift the 25% procurement cap on major crops; this should not be interpreted as a universal 25% cap applicable to every MSP crop in every procurement arrangement.
Why is Telangana facing agricultural distress?
Drought: Insufficient rainfall is affecting crop growth and yields.
El Niño: Its potential influence on rainfall patterns can aggravate agricultural stress, although the specific impact depends on prevailing weather conditions.
Irrigation constraints: Dependence on rainfall increases vulnerability to monsoon variability.
Rising input costs: Fertilisers, seeds, electricity and irrigation equipment affect farm profitability.
Features and Significance
Income security: Full procurement at MSP could reduce farmers' exposure to distress sales, where operationally implemented.
Crop diversification: Assured markets for maize, jowar and other crops may encourage farmers to shift away from water-intensive or drought-sensitive crops where agronomically suitable.
Rural employment: Employment and water conservation works can support household incomes during agricultural distress.
Climate resilience: Micro-irrigation and intercropping can improve water-use efficiency and spread production risks.
Food and nutritional security: Greater cultivation of millets and other suitable crops can diversify food systems.
Centre–State coordination: The situation highlights the need for coordinated action on procurement, agricultural inputs, drought relief and rural employment.
Challenges
Fiscal burden: Procuring all eligible produce at MSP can substantially increase public expenditure on procurement, storage, transportation and distribution.
Storage and logistics: Expanded procurement requires adequate warehouses, drying facilities, transport networks and processing capacity.
Crop diversification risks: Farmers may hesitate to change crops without reliable procurement centres, market access and timely payments.
Water scarcity: MSP support alone cannot address falling groundwater levels, irrigation gaps or irregular rainfall.
Procurement inequalities: Small and marginal farmers may face difficulties meeting quality standards or accessing procurement centres.
Implementation constraints: Expanding procurement requires clear eligibility rules, accurate production estimates and coordination between central and state agencies.
Environmental concerns: Price incentives that favour water-intensive crops can worsen groundwater depletion if they are not aligned with agro-climatic suitability.
Way Forward
Reform agricultural procurement
Improve access to MSP procurement centres and ensure timely payments.
Review procurement limits based on crop production, farmer needs and market conditions.
Expand decentralised procurement and strengthen farmer producer organisations (FPOs).
Improve awareness of procurement eligibility, quality norms and registration procedures.
Strengthen climate-resilient agriculture
Promote micro-irrigation, rainwater harvesting and watershed development.
Encourage millets, pulses, oilseeds and intercropping suited to local agro-climatic conditions.
Improve weather forecasting, crop advisories and climate-resilient seed availability.
Expand crop insurance and timely drought relief.
Diversify market support
Strengthen processing, storage and value chains for maize, jowar, pulses and millets.
Develop alternative market linkages, including FPO-led aggregation and institutional buyers.
Improve market information and reduce dependence on a single procurement channel.
Support rural livelihoods
Undertake drought-relief and water conservation works through applicable rural employment programmes.
Coordinate employment support with agricultural calendars.
Improve access to affordable credit and essential farm inputs.
Conclusion
The demand for 100% MSP procurement reflects the need to protect farmers from climate-induced agricultural distress and volatile market prices. However, procurement support must be complemented by water conservation, crop diversification, rural employment, insurance and stronger agricultural value chains.
