Rahul Gandhi slams Modi govt on Twitter.
Congress President Rahul Gandhi on Friday took to Twitter to say government's decision to hike MSP of paddy and other Kharrif crops is grossly inadequate. He compared it akin to 'applying a Band-Aid to a massive haemorrhage'.
Rahul Gandhi said on Twitter, " PM's grand MSP increase is budgeted at just 15,000 Cr. for India's 120 million farmers; which is like applying a Band-Aid to a massive hemorrhage. To put this MSP increase in perspective: in Karnataka, we've waived small farmer loans of over 34,000 Cr! Marketing Vs Action."
The government on Wednesday announced a significant increase in the Minimum Support Price (MSP) for kharif crops including paddy and pulses, in line with Prime Minister Narendra Modi’s promise of doubling farmers’ income by 2022. The hikes are aimed at offering farmers a 150% return on their input costs on each crop that includes heads such as household labour. The MSP hikes would mean more than Rs 15,000 crore additional expenditure for the state exchequer. But the government dismissed fears of this stoking inflation and said it was keeping a close eye on this aspect..
MSP serves as a floor price in wholesale agricultural markets. The latest round of increase comes after a brief lull. MSP witnessed a double-digit growth during agriculture years between 2009-2013 but then was moderated for various agricultural products in recent years, according to analysts at ratings agency Crisil. “While the average annual growth between agriculture years 2009 and 2013 was 19.3%, it was only 3.6% between 2014 and 2017. AY 2018 has seen a slight uptick, with an average MSP hike for kharif crops at 6.3%, compared with 4.9% in 2017. But overall, limited support from the floor price has further depressed market prices,” Crisil said.
On the other hand, the JD(S)-Congress government in Karnataka announced loan waiver during the state budget. Now, Rahul Gandhi is claiming that it has a larger budget than the MSP hike which is valid for the whole country.
In an election year, both Congress and BJP are trying to prove their credentials among the rural voters. With Madhya Pradesh, Chhattisgarh and Rajasthan elections slated for the end of the year, states which have large rural population, the battle for one-upmanship between the two parties is only likely to get more intense.
With inputs from DNA Correspondents
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