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Government announces hike in MSP of various crops as farmers continue protesting against the three Farms Laws
On 9th June, the Government announced an increase in the Minimum Support Price (MSP) of various crops, adhering to the policy of offering farmers at least 50% of their cost of cultivation. The price hike is a clear attempt to nudge farmers away from producing cereals (like rice which is in abundance) and shifting towards oilseeds and pulses (which India imports in large quantities). Consequently, the hike in the latter is much more pronounced, and the Government hopes that this will lead to better crop diversification.
[Minimum Support Price (MSP) is the price at which the Government purchases crops from the farmers.
The Commission for Agricultural Costs and Prices (CACP) recommends the MSP for 23 crops (14 Kharif crops, 6 rabi crops, as well as sugarcane, jute, and copra) before the commencement of the sowing season. The Food Corporation of India (FCI), state agencies, and co-operatives procures crops from the farmers to ensure the implementation of the MSP scheme]
(From- MINIMUM SUPPORT PRICE (MSP)- WHAT IS IT AND HOW DOES IT AFFECT THE FARMERS?)
Consider this report from the Hindustan Times about the specific price hikes-
Among key crops, the MSP for paddy has been raised from ₹1868 to ₹1940 a quintal, a hike of 3%. The rates for coarse cereals jowar and bajra were hiked by ₹118 or to stand at ₹2738 and 2250, which translate to a rise of 21% and 5% respectively. The price of urad, a lentil, has been increased sharply by ₹300 to stand at ₹6300 a quintal.
The highest increase over the previous year was for sesamum, an oilseed, whose MSP was raised by ₹452 a quintal, to stand at ₹7307 a quintal, up from ₹6855.
The next largest increase was for two lentils, tur and urad, whose MSPs were increased by ₹300 a quintal each. Prices of groundnut and nigerseed have been increased by ₹275 per quintal and ₹235 a quintal respectively. In all, prices were raised by up to 62%
Hindustan Times
Another important factor to be kept in mind is the measure used by the Government to fix MSPs. There are three definitions of agricultural costs. A2 costs cover all paid-out expenses on seeds, fertilisers, chemicals, hired labour, fuel, irrigation, etc. A2+FL covers paid-out expenses plus an imputed value of family labour. C2 cost is the most comprehensive cost that covers the imputed value of rent on owned land and interest on capital. MS Swaminathan’s recommendation is to fix MSP at 1.5 times the C2, but the Government has used A2 + FL as the reference.
The farmers, primarily from Punjab and Haryana, have been protesting against the three farm laws since last year. They have also demanded a legal backing for MSP, which until now is only a policy measure used at the Government’s discretion (although the Government, for political reasons, never exercises this discretion against the interests of the farmers). However, it is unlikely that MSP will be given statutory backing, considering that the scheme has mainly been counter-productive for the agricultural sector. It benefits only the more affluent farmers and skews incentives towards particular crops (like paddy in Punjab), which leads to over-exploitation of natural resources (depletion of the water table in Punjab is a case in point).
Hospitals contend that cap on Service Charge makes Vaccinations unviable for them
As reported by the Mint, private healthcare centres and hospitals have criticised the Government’s new vaccination policy wherein they have capped the service charge levied by private hospitals over and above the price per dose declared by the vaccine manufacturers. Private hospitals are concerned that the high price of vaccines and a low service charge will discourage them from providing vaccination services outside the hospital premises. For instance, the Fortis Group (one of India’s largest hospital operators) claimed that they have, thus far, taken various initiatives for providing their services at residential areas and workplaces but the current cap of Rs. 150 will not cover the additional expenses required to render such services.
[As reported by us yesterday, Covishield has been capped at Rs. 780, Covaxin at Rs. 1,410 and Sputnik V at Rs. 1,145]
El Salvador becomes the first country to adopt Bitcoin as a legal tender
On Wednesday, El Salvador, a South American country, became the first country to adopt a resolution recognising Bitcoin as a legal tender. The country does not have its own currency and uses US Dollars, which will continue to be used alongside Bitcoin. It has also said that it will mine Bitcoins using geothermal energy from its volcanoes, thus dispelling the environmental concerns surrounding Bitcoin mining. This comes days after China announced a crackdown on Bitcoin mining to reduce its carbon footprints and achieve ambitious climate goals (as reported by us on 6th June).
[Also read- BITCOIN- WHAT & HOW- ALL YOUR QUESTIONS ANSWERED]
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