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Farmer Protest in India 2024 is primarily focused on securing legal guarantees of a minimum support price (MSP) for their crops, loan waivers, and addressing policies that they believe harm farmers.The protest is a continuation of the 2020-2021 movement that led to the repeal of three farm laws by the Indian government.
Demands of farmers protest in India 2024
Demand or we can say Reasons of farmers protest in India 2024 are various issues and unfulfilled promises from the government of India. Here are the demands which they want to fulfil:
1.Legal guarantees of Minimum Support Price(MSP):
Demand of guarantees of Minimum Support Price for their crops is a major demand from the farmers which acts as a safety net from the farming community. They want an MSP that is at least 50% higher than the cost of production and the government must ensure that the MSP is fixed for all crops, not just for rice and wheat.
2.Implementation of Swaminathan Committee Report:
Farmers are demanding that the government implement the recommendations of the Swaminathan Committee Report which states that the MSP should at least be 50% more than the weighted average cost of production. This report aims to ensure fair prices for farmers.
3.Dismissal of a federal minister:
Farmers are demanding the dismissal of a federal minister whose son was accused of running his car over farmers in Lakhimpur Kheri district in Uttar Pradesh in October 2021.
4.Protection of APMC or Mandi House:
APMC stands for Agricultural Produce Market Committee. These are autonomous bodies established by state governments to regulate the marketing of agriculture with the goal to ensure that farmers receive a fair price. So, farmers are demanding the protection of APMC.
5.Compensation for farmers who died during the 2020-2021 protests:
Farmer's one another demand compensation for those who died during the 2020-2021 protests. They claim that around 750 farmers lost their lives during the previous protests.
6. State support:
Farmers are seeking more state support or a minimum purchase price for crops, as state agencies currently buy only rice and wheat at the support level, benefiting only around 7% of farmers but they want more support from the state.
7. Unfulfillment of promises
Farmers are protesting because they believe the government has not fulfilled its promises, including doubling their incomes and setting up a panel to ensure support prices for all produce.
They want the government to decide a promise to double their incomes, as costs of cultivation have risen while incomes have stagnated, making farming a loss-making enterprise
8. Debt waivers:
Farmers' other demand is waivement of farm loans and also they want strict penalties and fines on companies producing fake seeds, pesticides, and fertilisers.
9.Influence in Election:
Farmers form a prominent voting bloc, and parties try to gain their support. This is not a type of demand of farmers but it is one of the reasons for farmer protest before election.The government has held negotiations with the protesting farmers, but the talks have not yielded results.
10. Other demands:
Other demands include the withdrawal from the World Trade Organization (WTO), pensions for farmers and farm labourers, throw away of the Electricity Amendment Bill 2020, and punishment for the perpetrators of specific incidents.
Impact of the farmer's protest on the Indian Economy:
Farmers' protests in India have had a significant impact on the Indian economy. Here are some of ways in which the farmer protests have affected the economy:
1.Disruption to Agricultural Supply Chains:
The protests, primarily against the new farm laws, have disrupted agricultural supply chains in some regions, leading to logistical challenges and affecting the movement of goods. This disruption can impact the avaliability and prices of agricultural products, affecting both producers and consumers.
2.Impact on Economic Recovery:
Protest had a deep impact on economic recovery because it was barely recovering from the Covid-induced lockdown and restrictions on movement.
3.Decline in Agricultural Productivity:
If protests disrupt agricultural activities or supply chains, there could be a reduction in agricultural output. Apart from this, farmers have been unable to tend to their crops and livestock due to their participation in the protests which led to reduced agricultural output and potential losses for farmers.
4.Losses to Interconnected Economies:
The protests have dealt a major blow to the interconnected economies of the region, including those of Punjab, Haryana, Himachal Pradesh, and J&K, which have a combined economy of about Rs 18 lakh crore. Interconnected industries are suffering a daily loss of about Rs 3,500 crore due to the value chain and transport disruptions caused by the protests.
5.Uncertainty for Investors:
Farmer protests and the government's response to them have created uncertainty among investors, both domestic and foreign, about the future of agricultural policy in India. This uncertainty can prevent investment in the agricultural sector, which is crucial for its modernization and growth.
6.Government Spending and policy response:
The government's response to the protests, including measures to address farmers' concerns, may involve Increased government spending or changes in policy. These responses can have fiscal implications and affect the allotment of resources within the economy.
7.Political and Social Instability:
The protests have also contributed to political and social instability in some regions, which can have a comprehensive connotation for economic activity. Instability can lead to reduced investor confidence,obstruct business operations, and impact overall economic growth.
8.Impact on Trade and Exports:
The protests and associated disruptions can impact agricultural trade and exports, potentially leading to lower export revenues for certain agricultural products. According to sources, In February 2024, traders in Delhi said the ongoing farmers' protest has impacted trade, resulting in an estimated loss of approximately Rs 300 crore so far.
9.Impact on food processing and retail industries:
The disruptions caused by the protests have also affected food processing industries and retail outlets which further leads to financial losses and reduced profitability.
10.Negative impact on Government finances:
The protests have also put pressure on the government's finances as it needs to spend more on subsidies and relief measures to support the farmers and mitigate the impact of the protests on the economy.
What is the government's plan to address the farmers' concerns?
Based on the information available, government has fixed this year's minimum support price for wheat at 2,275 rupees ($27.41) per 100 kg, 7% higher than in 2023, and it might agree to provide farmers a bonus over and above the minimum support price for 2024 to placate them.
The government has also formed a committee to address farming issues, but it has failed to include representatives from Punjab, Haryana, and Uttar Pradesh, all major grain producers.
The government has held talks with the farmers, but these negotiations have not yielded results. Additionally, Indian police have used tear gas and detained some farmers who clashed with them at the border between Haryana and Punjab.
The government aims to avoid a major confrontation with the farmers, who form a crucial voting bloc, especially as the protests are occurring for months before the next general election in India.
According to information available on Economic Times, Recently Union Minister Piyush Goyal presented no. of solutions to address concerns of protesting farmers in the fourth round of talks between three Central ministers and farmer leaders held in Chandigarh on Sunday i.e. 18th February 2024.
The Minister proposed a five-year deal with the farmers to buy pulses and cotton at minimum support price (MSP).
After meeting with farm leaders he said, “The govt promoted cooperative societies like NCCF (National Cooperative Consumers' Federation of India) and NAFED (National Agricultural Cooperative Marketing Federation of India) will form a contract and buy products from the farmers on MSP. There will be no limit on the quantity".