‘There’s a misconception that MSP is needed everywhere': Shivraj Singh Chouhan

‘There’s a misconception that MSP is needed everywhere': Shivraj Singh Chouhan

Shivraj Singh Chouhan, Union Minister of Agriculture and Farmers’ Welfare; and Rural Development, talks about agriculture, farmers’ incomes, and more

‘There’s a misconception that MSP is needed everywhere': Shivraj Singh Chouhan
Rahul Kanwal and Siddharth Zarabi
  • Oct 03, 2024,
  • Updated Oct 03, 2024, 4:53 PM IST

When Shivraj Singh Chouhan was the Chief Minister of Madhya Pradesh, the state had an agricultural growth rate of 6.5% per annum, while the national rate of growth was just 3.7%. The agricultural revolution in Madhya Pradesh caught everyone’s attention. The biggest question now is whether 65-year-old Chouhan, as the Union Minister of Agriculture and Farmers’ Welfare, can implement it across India. Chouhan, who also holds the portfolio of Rural Development, discusses his vision and the challenges in an interaction with Rahul Kanwal, News Director of India Today and Aaj Tak and Executive Director of Business Today, and BTTV Managing Editor Siddharth Zarabi, at the BT India@100 summit. Edited excerpts:

Hey!
THIS IS A PREMIUM STORY FROM BUSINESS TODAY.
Subscribe to Business Today Digital and continue enjoying India's premier business offering uninterrupted
only FOR
₹999 / Year
Unlimited Digital Access + Ad Lite Experience
Cancel Anytime
  • icon
    Unlimited access to Business Today website
  • icon
    Exclusive insights on Corporate India's working, every quarter
  • icon
    Access to our special editions, features, and priceless archives
  • icon
    Get front-seat access to events such as BT Best Banks, Best CEOs and Mindrush

RK: One of the biggest promises made by the Prime Minister Narendra Modi-led government in 2016 was to double farmers’ incomes by 2022. That promise is lagging. Do you think farmers’ incomes can be doubled, and how?

A: I disagree that incomes haven’t increased. Under the leadership of PM Modi, several revolutionary changes have taken place in agriculture over the past 10 years. Our strategy aims to increase farmers’ incomes and ensure the country’s food security. Our population is 1.4 billion today and will grow to 1.6 billion by 2047. As purchasing power increases, so will the consumption of food items. From that perspective, we need to meet India’s needs.

Efforts to increase farmers’ incomes will continue. We will also meet the country’s needs. Now, the PM’s resolve and my dream is for India to become the world’s food basket. We will not just meet our own needs; we can also meet the world’s food needs. We are moving in that direction. I am happy to say that this year alone, we exported 4 million tonnes of rice. Madhya Pradesh’s Sharbati wheat is known worldwide. Our strategy includes increasing production; reducing production costs; ensuring fair and remunerative prices for farmers; providing relief during natural disasters; emphasising agricultural diversification and value addition; and focussing on organic and natural farming.

There is still significant potential to increase the area under irrigation. For example, when I became the CM of Madhya Pradesh, the irrigated land area was only 700,000 hectares. We increased it to over 5 million hectares, and with ongoing projects—like the National River Linking Project—it will reach 7 million hectares.

When the PM was the Chief Minister of Gujarat, he brought the water of the Narmada to several rivers. In Madhya Pradesh, we brought the water of the Narmada to the Gambhir, Shipra, Kali Sindh, and Parvati rivers.

The first requirement is irrigation. The second is seed production. Five scientific labs, under the Indian Council of Agricultural Research (ICAR), are working in this regard. This work needs more direction. Recently, the PM released 109 new seed varieties of 65 crops. For example, we have developed a millet seed that will yield a crop in 70 days, while typically it takes 110-120 days. This saves time and allows for a second crop.

We have also developed a rice variety that requires 30% less water. Water conservation and its efficient use are essential today. This rice variety won’t require transplanting but can be sown directly, like wheat. You don’t need to flood the fields and transplant by hand.

We need to bring high-quality seeds [to farmers] and need measures to reduce costs and increase production. For instance, today, farmers scatter urea by hand, which leads to uneven application. We will use drones and advanced technology to reduce fertiliser use and unnecessary expenses.

There are many ways to reduce costs. We have a well-planned strategy under the leadership of the PM… The Prime Minister said from the ramparts of the Red Fort that to build a developed India by 2047, he will work three times harder and faster. This makes us determined that we, too, will work three times harder and faster.

SZ: When we talk about a population of 1.6 billion by 2047, where will the money to meet the demands for minimum support price (MSP) come from? Will we develop agriculture solely based on MSP, or is it time to think beyond it?

A: We need a balanced approach. If farming is unprofitable, how will the farmer survive? Just like no company can continue a business in losses, the farmer also needs two meals a day, money to educate their children, marry off their daughter, and other essential things.

I am proud to say that today, the PM Modi-led government has set MSP with a 50% profit over the cost. This never happened during the time of the Congress. They even stated in a Cabinet note that MSP could not be provided. MSP is essential, and I believe it should be given. But for the future, we should use methods that increase profitability… by using modern technology.

SZ: Do you think farmers have become victims of MSP politics as we have seen in the case of agricultural laws?

A: I believe the decision to provide MSP with a 50% profit over the cost by the Modi-led government is justified and fair. Farmers need to be given this.

The second point is that we do not always rely solely on MSP. Today, many wheat varieties fetch prices higher than MSP. Basmati rice prices are also above MSP. There are many instances of farmers not selling their produce at MSP because they get higher rates in the market. There is a misconception that MSP is needed everywhere; MSP is required only when market prices fall below it. In the future, if we use modern technology to increase production and reduce costs, profits will naturally increase. We need to produce crops that meet export standards.

Today, we are one of the Top 5 exporters [of agricultural goods] in the world. But when there is uncontrolled and excessive use of chemical fertilisers, our produce faces bans. Therefore, we must educate farmers to grow quality crops.

SZ: You hold two major ministries—rural development and agriculture. You also have a substantial budget that can directly benefit the population. What changes would you like to make?

A: Our growth rate in agriculture and horticulture is 4.6%, which shows the strength of the farming sector. During Covid-19, when the world was struggling, India’s economy was largely unaffected because our farmers continued to work in the fields. The whole world witnessed the strength of Indian agriculture.

We have a well-planned strategy on agricultural diversification. There was a time when we had a tradition of multi-cropping… we are reviving that. Instead of relying solely on paddy cultivation, we are moving towards other crops. Many such experiments are taking place.

RK: The Haryana government announced it will pay MSP, but the Congress and the Samyukt Kisan Morcha say it is not sufficient. [Leader of the Opposition and Congress leader] Rahul Gandhi says his party will bring MSP as a legal guarantee, something that a section of the farmers also wants. What is your view?

A: If we look at the history of the Congress, their Prime Ministers, whom I respect a lot, rarely mentioned farmers and agriculture in their speeches from the Red Fort. From 1947 to 1950, the word ‘farmers’ was mentioned only once [during Independence Day speeches]. After that, from 1951 to 1958, there was no mention of the word. The late Indira Gandhi, whom I respect very much, imposed levies on farmers, and their grain was forcibly collected by officers. She also said that higher prices could not be given. There was even a Prime Minister who, when told red chillies fetched higher prices, responded, ‘Then why don’t farmers grow red chilies instead of green ones?’

As for the current leaders, I won’t say much, but for them, farmers and agriculture are just part of vote bank politics. The Congress ruled for many years but did nothing significant [for farmers]. The Congress even stated in a Cabinet note that giving MSP at 50% of the cost would distort the market and could not be implemented... It’s easy to make promises during elections, but when they were in power, they did nothing.

Narendra Modi believes in doing solid work, and continuous efforts are being made in that direction for agriculture and farmers.

If the Congress talks about MSP for farmers, then look at how much the MSP was when the Congress was in power. Congress governments purchased only around 100,000 metric tonnes of pulses, while we purchased 17 million metric tonnes. This is an achievement of the Narendra Modi government. Look at the rates, the approach, the quantities—the Congress never did anything.

Agriculture is primarily a state subject. The central government sets the MSP and makes purchases, but many state governments do further work, and the Haryana government has made a good decision.

SZ: A frequent complaint of farmers is that the central government keeps imposing export restrictions. But governments also need to keep prices in check. Is it the right thing to do?

A: First, we must ensure that there is income for farmers and give them a remunerative price. But at the same time, we need to consider that during Covid-19 or because of the Russia-Ukraine war, we could export more wheat. We also need to ensure that our population has enough food. We have to provide grains through the public distribution system, so we must assess how much grain we have to feed our population. In such circumstances, it becomes our primary duty to give the farmer MSP, while ensuring that our people have sufficient food grains to eat.

RK: You had introduced the ‘Ladli Behna’ scheme before the Madhya Pradesh elections. Some people in the BJP thought this was a freebie and did not align with the party’s ideology. But the party benefitted in the polls and other states are also copying this. Now, former MP CM Kamal Nath of the Congress claims that it was his idea. If this is indeed a form of freebie, why is the BJP implementing it?

A: What stopped Kamal Nath from implementing this scheme during his 15 months in power? If it was his scheme, what prevented him from implementing it? My party never stopped me from implementing the ‘Behna’ scheme. We started the ‘Ladli Laxmi’ scheme in 2006 when I became Chief Minister. There were no elections at that time. There was a significant difference in the birth rate of boys and girls in the state. In MP, only 912 girls were born for every 1,000 boys. There was discrimination between sons and daughters, which was painful. I felt that just giving speeches wouldn’t be enough, so I designed a scheme where the birth of a daughter would be considered a blessing. The thought was that if a daughter is born rich, parents would not hesitate to give birth to her.

RK: This is your first interview after moving from Bhopal to Delhi. So, was the Chief Minister’s position in Bhopal better, or does being Union Agriculture Minister suit you better?

A: It doesn’t matter what position you are in; what is important is how you perform in that position. When I was in Madhya Pradesh [as CM], I was dedicated day and night to serving the people of the state. Now, as PM Modi has entrusted me with the task of agriculture and rural development, my life’s mission is to do the job with full dedication. I don’t see any difference; I was working hard there, and I am doing the same here.

RK: You’ve talked about problems and their solutions. But implementing them is difficult. Your political stature gives us hope that you can accomplish this difficult task...

A: The PM is incredibly dedicated to the welfare of farmers, and various schemes have been designed for this purpose. I want to give an example... natural farming… if agriculture is to become more profitable, and if the land is to remain productive for future generations to produce fruits, vegetables, and grains, then we have to gradually prepare the country in that direction. We must work together with all states because crops will only grow in the states. This is very important, and that’s why it is essential to work together with all the states. The Centre doesn’t have separate land where Shivraj Singh Chouhan can perform miracles. Therefore, we are holding discussions with the agriculture ministers of different states. Their problems are being brought to light, and we are solving them.

For me, this is a mission. Agriculture is and always will be the backbone of the Indian economy. And the soul and lifeblood of agriculture are the farmers. To us, farmers are like Gods, and serving them is like worshipping God. I am fortunate to have been given this responsibility by the PM. Every moment of my life is spent figuring out how we can develop farming, agriculture, and villages. The meaning of life is not just to occupy a post, but to work while being in that position. 

@rahulkanwal, @szarabi

Read more!
RECOMMENDED