On August 4, 2024, Haryana Chief Minister Nayab Singh Saini announced that the state would purchase all crops at the Minimum Support Price (MSP), making Haryana the first state in India to implement this on such a large scale. This move is seen as a strategic effort before the upcoming Assembly elections, especially after the ruling party’s poor performance in the recent Lok Sabha elections.
Key Announcements
Here are the main points of Saini’s announcement:
- All-Crops MSP Procurement:
- The Haryana government will buy all crops at the MSP.
- This expands from the current practice of covering 14 crops to include an additional nine crops.
- Waiving Irrigation Charges:
- Rs 133 crore in outstanding canal water irrigation charges will be waived.
- This is expected to save farmers about Rs 54 crore annually.
- Pending Compensation Payments:
- Rs 137 crore in pending compensation will be paid to farmers affected by natural disasters.
- These payments will be made quickly, within a week.
- Expanded Motor Purchase Options:
- Farmers will be able to buy three-star motors for their tube-wells from any registered company in India.
- This gives farmers more options and better access to necessary equipment.
Political Implications
These announcements are part of the BJP’s campaign to regain its popularity before the assembly elections. The party is trying to bounce back after its vote share dropped from 58% in 2019 to 46% in 2024. The Congress party has gained support, winning five Lok Sabha seats and increasing its vote share. In a rally, Saini urged BJP workers to engage with citizens to showcase the government’s achievements and policies, reinforcing the party’s goal to win a third consecutive term in office.
About Minimum Support Price (MSP)
The Minimum Support Price (MSP) is a price set by the government at which it buys certain crops directly from farmers. It was established in India in 1966 to protect farmers from price drops. MSP is announced for 23 crops, including cereals, pulses, and oilseeds. It is a crucial tool for agricultural stability because it encourages production and helps with food security. However, how it’s implemented can vary by region, and some critics say it may lead to overproduction. MSP affects market prices and farmer incomes, shaping agricultural policies.
