MSP Procurement Allocation for Farmers Cut By 2% in Budget 2022-23

by GoNews Desk 2 years ago Views 2792

Budget 2022 Sitharaman MSP Farmers Food Subsidy
Despite demands from farmers unions and agriculture activists after the repeal of three controversial Farm Laws, the Finance Minister has not increased allocation for procurement of food grains. In fact, allocation has been reduced from Rs 2.42 lakh crore from last budget to Rs 2.37 lakh crore in the Budget Speech of Finance Minister Nirmala Sitharaman. A budget cut of more than 2% from earlier estimates.

Presenting the details on Food Subsidy Shrimati Sitharaman said: “Procurement of wheat in Rabi season 2021-22 and the estimated procurement of paddy in Kharif season 2021-22 will cover 1208 lakh metric tons of wheat & paddy from 163 lakh farmers and Rs 2.37 lakh crores will be the direct payment of MSP value to their accounts.” 

Though higher than the levels of pre Pandemic level, this allocation is actually 2% less than envisaged last year. In the year 2019-20 the allocation for Food Subsidy was Rs 1.08 lakh crore. In 20-21 budget estimates, the allocation was increased to Rs 1.15 lakh crore. But after the debilitating impact of the Covid19 and the resultant lockdown, the allocation was raised to Rs 4.22 lakh crore in Revised Estimates. In year 2021-22 the government spent Rs 2.42 lakh crore on procurement of food grains. This year the allocation is reduced to Rs 2.37 lakh crore according to the Finance Minister.

After a year long agitation and encircling Delhi borders, the farmers withdrew their agitation after the government repealed the three farm laws. But their demand shifted to increase in Minimum Support Price of their produce like paddy, wheat and sugarcane. This decrease in procurement allocation will be a blow to the expectation of the farmers who lost more than 500 lives during their agitation. Two states where a large number of farmers impacted by food grain procurement are Punjab and Uttar Pradesh where state assembly elections are underway currently.

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