In an effort to resolve the deadlock with protesting farmers, the Indian government has announced guaranteed support prices for pulses, corn, and cotton. Trade Minister Piyush Goyal revealed the government’s proposal after week-long clashes between security forces and farmers demanding higher prices for nearly two dozen crops.
Tear gas and barricades were deployed to deter the farmers, who wield significant political influence, months ahead of the general election scheduled for May, where Prime Minister Narendra Modi seeks a third term. The government’s proposal includes offering five-year contracts for a minimum support price to farmers diversifying their crops, specifically targeting pigeon peas, black matpe, red lentils, and corn. Cooperative groups promoted by the government will purchase the produce without quantity limits, as outlined by Goyal in Chandigarh.
Additionally, similar price guarantees will be extended to farmers diversifying into cotton production. The farmers’ unions are expected to assess and decide on the proposal within a day or two, after reaching consensus among themselves.
Encouraging farmers to shift towards pulses from water-intensive crops like rice and wheat is aimed at replenishing the depleting water table and reducing India’s reliance on pulse imports. India, being the world’s largest importer of pulses, has faced challenges in controlling the prices of pigeon peas and black matpe.
Moreover, the domestic demand for corn has been on the rise due to increased consumption by the poultry and ethanol industries. The ongoing protests, primarily by wheat and rice farmers, have been met with police resistance, including the use of tear gas and barricades, as they attempted to march to New Delhi to press for a minimum price guarantee for all their produce.
