Haryana Becomes First State to Procure All Crops at MSP

August 6, 2024

On August 4, 2024, Haryana Chief Minister Nayab Singh Saini announced that the state would buy all crops at the Minimum Support Price (MSP), making Haryana the first state in India to do this on such a wide scale. This move is seen as a strategic effort before the upcoming Assembly elections, especially after the ruling party’s poor performance in the recent Lok Sabha elections.

Key Announcements

Here’s a breakdown of the key announcements:

All-Crops MSP Procurement: Saini promised that the Haryana government would buy all crops at MSP. This is a significant expansion from the current practice, where only 14 crops were covered. Now, nine additional crops will also be included.
Waiving Irrigation Charges: The Chief Minister announced that Rs 133 crore in outstanding canal water irrigation charges would be waived. This is expected to save farmers about Rs 54 crore each year.
Pending Compensation Payments: He committed to paying Rs 137 crore in pending compensation to farmers who have been affected by natural disasters. The payments will be made quickly, within a week.
Expanded Motor Purchase Options: Farmers will now be able to buy three-star motors for their tube-wells from any registered company in India. This provides them with more options and better access to necessary equipment.

Political Implications

These announcements are part of the BJP’s campaign to regain its popularity before the assembly elections. The party is trying to bounce back after a drop in its vote share from 58% in 2019 to 46% in 2024. The Congress party has gained support, winning five Lok Sabha seats and increasing its vote share. In a rally, Saini urged BJP workers to engage with citizens to showcase the government’s achievements and policies, reinforcing the party’s goal to win a third consecutive term in office.

About Minimum Support Price

Minimum Support Price (MSP) is a price set by the government at which it buys certain crops directly from farmers. It was established in India in 1966 to protect farmers from price drops. MSP is announced for 23 crops, including cereals, pulses, and oilseeds. It is a crucial tool for agricultural stability because it encourages production and helps with food security. However, how it’s implemented can vary by region, and some critics say it may lead to overproduction. MSP affects market prices and farmer incomes, shaping agricultural policies.

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