The renewed “Dilli Chalo” farmers’ protest, which was scheduled for December 6, 2024, marks a significant escalation in the ongoing confrontation between farmers and the Central Government. This movement, spearheaded by groups such as the Samyukta Kisan Morcha (Non-Political) and the Kisan Mazdoor Morcha, is rooted in longstanding grievances over unfulfilled promises made during the 2020-21 protests.
Thousands of farmers, primarily from Punjab, Haryana, and Uttar Pradesh (UP), have been demanding legal guarantees on Minimum Support Prices (MSP), farm debt waivers, pensions for farmers and labourers, and justice for victims of past violence, including the Lakhimpur Kheri incident of 2021. Other demands include the reinstatement of the Land Acquisition Act, 2013, and compensation for families of farmers who died during previous agitations, particularly the large farmers’ protests at Singhu, Tikri and Kundli.
Large groups of farmers from Punjab and Haryana have gathered at border points like Shambhu and Khanauri. Farmers from UP are expected to join in substantial numbers, amplifying the scale of the march. But the key takeaway from this movement is that a lot of factions have emerged among the farm unions. It stems partly from disagreements over leadership and the direction of the protests following the 2020-21 agitation.
So, what is the current stand?
The farmers have rejected a government proposal to guarantee MSP for select crops for five years, arguing that the offer is insufficient and excludes a vast majority of farmers. Farmer leader Jagjit Singh Dallewal criticised the limited scope of the proposal, emphasising the need for MSP to cover all crops to ensure equitable benefits for farmers nationwide.
About 65 percent of the country’s population lives in rural areas and 47 percent of Indians are dependent on agriculture for their livelihood. But the growth of Indian agriculture has remained sluggish.
A study by the Indian Council of Agricultural Research (ICAR) has shown that crops not covered by MSP often face price fluctuations, making farmers vulnerable to market forces. Farmers argue that a broader MSP system would stabilise prices and ensure fair compensation for their labour. For farmers, MSP plays a crucial role in income security. In the absence of it, farmers often sell their produce at significantly lower prices, especially in the case of perishable goods like tomatoes, cauliflower etc. The government’s procurement at MSP acts as a crucial safety net, particularly for rice and wheat, which are produced in large quantities and have stable market demand. While the MSP for wheat and rice is implemented effectively in states like Punjab and Haryana, many other states, especially in the northeast and the southern regions, struggle with procurement issues.
Farmers are seeking MSP for 23 crops whose floor prices should be fixed at 50 percent above the comprehensive cost of production given by the father of the green revolution, M S Swaminathan.
The Government has maintained a firm stance, resisting demands for legally guaranteed MSP while expressing openness to dialogue. It argues that such guarantees could disrupt market dynamics and lead to fiscal imbalances. Instead, it has shifted focus to long-term reforms aimed at improving the agricultural sector. These measures include restructuring the Food Corporation of India (FCI) to streamline procurement and distribution, promoting investments in post-harvest infrastructure, and expanding programmes such as the PM-Kisan Samman scheme, which provides direct financial assistance to farmers.In the Union Budget 2024-25, certain schemes have been laid down to accelerate agricultural growth and income of farmers such as issuance of Jan Samarth based Kisan Credit Cards.
Direct financial assistance is aimed for 11.8 crore farmers, under PM-Kisan Samman Yojana and crop insurance to 4 crore farmers under PM Fasal Bima Yojana. Technological interventions like the application of Nano DAP and investments in crop insurance programmes have also been emphasised.
As per the Government and the Supreme Court, the protests are leading to economic losses and traffic snarls on the roads. According to estimates from the PHD Chamber of Commerce and Industry (PHDCCI), these disruptions are resulting in daily economic losses exceeding ₹500 crore daily in northern states and impacting vegetable prices in cities like Delhi.
The promise of doubling the agricultural income is still unmet. In 2019, the average monthly income of agricultural households in India was around ₹10,000, with nearly half of these families facing debt. Additionally, around 50% of farmers lacked access to conventional financial services. The agriculture sector, which employs about half of India’s workforce, contributes less than 20% to the country’s GDP.
CRISIL Market Intelligence & Analytics estimates that making MSP an act and giving MSP to farmers on all 23 crops will cost 210 billion rupees (USD $2.53 billion). Business Today India writes that MSP guarantee will cost additional Rs 10 lakh cr which is equal to infrastructure spending. This is an unclear statement because in a country like India not providing MSP will not necessarily lead to transition of labour from traditional agricultural sector to a modern industrial sector as it is provided in the Lewis’s Model.
Certainly, talks are the only means to resolve the deadlock. But, there needs to be a hastening of the process with effective remedial measures, as the cost of not doing so is going to be excruciatingly painful with serious socio-economic ramifications.
