Just after the day, the union budget was presented in the Lok Sabha, on an appeal of Samyukta Kisan Morcha (SKM), the farmers under the banner of CPIM have burnt the effigy of the budget. All India Kisan Sabha national Vice-President and CPIM leader Dr. Inderjit Singh divulged why the budget is anti-farmer.
SKM had appealed to the farmers across India to conduct widespread campaigns and protest across India in the villages and burn the copies of this anti-people, pro- corporate Budget, a release of SKM reveals so. The details of the mode and date of campaign and protest was left to be decided by the respective State Coordination Committees of the SKM.
However, the finance minister had publicized the budget as an alluring budget for the agricultural sector.
While presenting budget for the financial year 2024-25 on Tuesday,23 July, the Union Finance Minister Smt. Sitharaman said that productivity and resilience in agriculture is first among the nine priority areas announced in the Union Budget. The Budget 2024-25 has made a provision of ₹ 1.52 lakh crore for agriculture and allied sector. Terming ‘Annadata’ (Farmer) as one of four major castes which need to be focused upon, the Minister said that the Government has announced higher Minimum Support Prices a month ago for all major crops, delivering on the promise of at least a 50 per cent margin over costs. She said Pradhan Mantri Garib Kalyan Anna Yojana was extended for five years, benefitting more than 80 crore people.
The FM informed the house that the Kisan Credit Card (KCC) has streamlined agricultural credit accessibility. As of January 31, 2024, banks issued 7.5 crores KCC with a limit of ₹9.4 lakh crores. As a further measure, the KCC was extended to meet the working capital needs of fisheries and animal husbandry activities in 2018-19, along with the enhancement of the limit for collateral-free loans to ₹1.6 lakh. In the case of a Tri-Partite Agreement (TPA) among borrowers, milk unions, & banks, the collateral-free loan can go up to ₹3 lakh. As of March 31, 2024, 3.49 lakh KCC were issued to fisheries and 34.5 lakh KCC for animal husbandry activities.
Why the farmers’ union criticizing the budget ?
But the Samyukta Kisan Morcha (SKM), an umbrella of Indian Farmers’ Union, has strongly criticized the Union Budget 2024-25 placed by Finance Minister Nirmala Sitaraman on 23rd July 2024 in the Parliament for its ardent direction of corporatization of agriculture at the cost of farmers and workers and usurping the rights of State Governments thus violating the basic concept of Federal Character of the Constitution of India.
In a statement released on 24th July 2024, SKM alleged that the Budget has been prepared under the duress of International Finance Capital.FM has declared a tax exemption of 5% for MNC’s and not ready to tax the Corporates and Super Rich while 67% of the GST collected as indirect tax is from 50% of the poor population. There is no tax increase on Corporate Companies and any wealth tax and inheritance tax thus clearly revealing its anti-farmer, anti-worker class bias. This is not acceptable to the farmers of the country.
Infuriated on the issue of non-implementation of MSP as per Swaminathan report despite long agitation by the farmers and a 13 months dharna at Delhi border, the farmers’ outfit burst out, “The Budget has neglected the long pending genuine demands of the farmers for MSP@C2+50% with guaranteed procurement. The finance minister said in the Budget speech ‘for Annadata, the Government had announced higher Minimum Support Price a month ago for all major crops, delivering on the promise of at least a 50 per cent margin over costs’ is untrue. The promise was @C2+50% and the current MSP is @A2+FL+50%. SKM demands the finance minister to clear this fact to the people through a White Paper on MSP thus uphold the transparency and propriety in governance.”
SKM was expecting a loan waiver for the farmers in the budget, but got disappointment. The farmers’ union pleaded that even though the RBI has transferred Rs.2, 10,874 crore as surplus to the Union Govt. for the accounting year 2023-24, the Budget has cruelly neglected the long pending demand of comprehensive Loan Waiver to Farmers and Workers though as per the official records 31 farmers are committing suicide daily in India. The Union Government had given 14.46 lakh crore debt waivers to corporate houses during the last ten years and is currently processing another 10.2 lakh crore through Insolvency and Bankruptcy Code.
Stating the provision by FM for agriculture sector a drop in the ocean, SKM condemned the budget by giving facts and figures, “Out of the 48.25 lakh estimate of the Union Budget 2024-25 only Rs. 1, 51, 851 crore or mere 3.15% is the share of Agriculture and allied sector. The share of this sector has declined during the past Budgets as 5.44% in the year 2019-20, 5.08% in 2020-21, 4.26% in 2021-22 and 3.23% in 2022-23. The Budget did not repeal GST on farm inputs including seed, fertilizer, machineries, spare parts and tractor thus helping the farmers to reduce the cost of production. This is the attitude of the Modi Government towards this important sector that sustains 45.76 % of the work force and 58 % of the population.”
SKM has demanded a separate Budget for Agriculture and Rural Development with adequate share of the Union Budget.
SKM added that the Budget ignored one of the most important demands of replacing the failed PMFBY and NDRF with an insurance scheme in the Public Sector and also provides interest free credit to farmers despite crop failures increasing in natural calamities due to Global warming.
However, the finance minister Nirmala Sitharaman, expecting farmers’ acclamation, said that she has prioritized agriculture in the Union Budget, proposing to train 1 crore farmers in natural farming to enhance productivity, sustainability, and access to premium markets for organic produce. “This initiative aims to provide farmers with certifications and branding, facilitating a shift towards sustainable agriculture.”
But contrarily, the FM got criticism from the farmers’ umbrella. SKM commented, “The decision of taking 1 crore landed farmers out of 9.3 crore to natural farming is detrimental to increasing agricultural production and will create a food crisis. The cut in fertilizer subsidy has raised the cost of production and it will destroy the food security of the country paving way for immense social calamity in future as experienced by countries like Sri Lanka.”
Highlights of the budget claim that through initiatives aim to modernize agriculture and ensure sustainable growth across the sector, some progressive efforts will be made, which include achieving self-sufficiency in pulses and oilseeds, developing vegetable production clusters, implementing Digital Public Infrastructure in agriculture, and supporting shrimp farming through NABARD.
Negating the DPI, SKM stated, “The announcements of Digital Public Infrastructure (DPI) in agriculture to register land and crops and the National Cooperation Policy are aimed at encroaching the rights of the State Governments since agriculture, land and cooperation are the State subjects as per the Constitution of India. SKM stands for upholding the Constitutional provision of Cooperation as the State Subject and strongly demands to abolish the Union Ministry of Cooperation formed in 2019.”
The SKM smells that the budget is indicating government’s hidden policy to go ahead towards contract farming, “The long-term objective of the Budget is promoting contract farming under the direct control of the Corporates and MNCs. The ICAR signed Memorandum of Agreements with MNC’s including Bayer and Syngenta working in agribusiness and Research and Development sectors and the finance minister declaring to provide fund to private sector for promotion of R&D are part of efforts to implement the Black Farm Acts through the rear doors.”
SKM had demanded the Union Government to amend the GST Act and reinstate the right to taxation of the State Governments thus upholding the principle of Strong States: Strong Union of India. The negation of the right of the States for taxation and then practicing discrimination in fixing the share of allocation to the States has become a serious matter of political concern. The BJP and NDA are pitching the fund starving States against each other and appeasing certain States with irrational allocations to sustain in power, is ruinous and dangerous and in the long run will injure the national unity and cohesiveness of sustaining in a federal structure respecting the diversity of various nationalities that constitute India.
SKM exhorts all the State Governments and all the political parties to take firm and clear positions on these serious issues and rally against the Modi Govt. demanding change in the policy of centralization of power ensures taxation rights of the States, thus protecting the interests of the people and the country.
Raising the issue of Minimum wages, the farmers’ union states, “The Budget did not reflect the demands like minimum wage of Rs.26000 per month for workers that can support the 90% of the workforce in the unorganized sector, recruitment in the existing 30 lakh plus vacancies in the Public Sector as well as Govt. Sector and wage hike to Rs.600 per day and minimum work of 200 days under NREGA. In fact, instead of making the allocation for MNREGS doubled, it has been reduced. The demand for linking MGNREGS with watershed planning and agricultural development is neglected. The wrong policy on MSP and MNREGA reveals that the Modi Govt. has no sincerity to revive agriculture and small production to end farmers’ suicide, distress migration and the acute crisis of unemployment.”
SKM strongly condemned the silence of the finance minister in her Budget speech about the serious issue of loss of crop and life due to the wild life menace. The crop wise demands such as clearing arrear of Sugar Cane farmers, declaring Price Stabilization Fund and support price of Rs. 250 per kilo for Rubber farmers, 100% import duty on Apple, market protection for Onion, Potato and vegetable farmers, extending NREGA towards Dairy and Animal Husbandry sector, Market Price for Cattle and end stray cattle menace to crops and human life etc. also are not addressed in the Budget.
Jag Mohan Thaken is a Senior Journalist, Columnist & Political Analyst, views are personal
