SBI Ecowrap Report on Farmer Protest: The agitation of the farmers against the central agricultural laws is going on continuously. The research team of the country’s largest bank State Bank of India (SBI) in its Ecowrap report has claimed that these protests are more political rather than economic. Apart from this, some strategic suggestions have also been made so that the deadlock on the farm bill can be ended. These include strategic suggestions from the MSP to the Agricultural Product Market Committee (APMC).
According to the ECORAP report, till December 11, the government procurement of 55 percent kharif crops on MSP i.e. MSP was from Punjab, while it is third in the country in paddy production. If we talk about the purchase, till December 11, it was not procured from West Bengal, the largest producer of rice, and up to 8 per cent from the second largest producer state, Uttar Pradesh. Only 1 percent of purchases were made from Andhra Pradesh. 70 percent of purchases were made from both the states of Punjab and Haryana. Thus, it can be seen that West Bengal where there is no purchase and Delhi where there is no paddy yield, they are also opposing the Agricultural Bill, in such a situation, this opposition seems politically motivated.
These 5 tips given in SBI Ecowrap
SBI’s research team has suggested five strategic points to the government in its EcoRap report through which the deadlock between farmers and the central government can be resolved.
- First suggestion- According to the demand of the farmers, instead of guaranteeing the minimum support amount (MSP), the government should add Quantity Guarantee Clauses to the law for five years. Under this, the percentage of procurement should be at least the same as the previous year compared to the production. However, exceptions like natural calamities like flood or drought will be considered. SBI’s research team found in its investigation that according to the trend till now only 25-35 per cent of some wheat production has been procured, in which Punjab and Haryana have the highest share. Apart from this, most of the procurement is also from Telangana and Kerala. The report has claimed that this will reduce the farmers’ worries to a great extent.
- Second suggestion- The MSP should be replaced with the floor price of auction on the National Agricultural Market (eNAM). However, it will not be able to solve the farmers’ problem completely as the average model price of all commodities except Urad is lower than the MSP in e-NAM mandis.
- Third suggestion- APMC should try to strengthen the infrastructure of the market. According to a government report, if you estimate the value of loss after sowing and sowing of grains, then it is about 27 thousand crores. This figure is 10 thousand crores for oilseeds and 5 thousand crores for pulses. That is, grains, oilseeds and pulses of equal value have been lost.
- Fourth suggestion- The research team of SBI has suggested that a contract farming institute should be established in India. According to the suggestion, this institute will have the authority to inspect the price fixed for contract farming. Contract farming has ensured the producers (farmers) in many countries of the world have access to the supply chain with market and price stability and technical assistance. Is also made available. Citing the example of Thailand, this report said that mainly because of 52 per cent market stability and 46 per cent price stabilization, the farmers there partnered in contract farming.
- Fifth suggestion- Revising KCC rules which reduces the efficiency of the bank’s agri portfolio. For example, the SBI’s research team found in its model calculus that if the KCC norms were revised, the monthly income of farmers could increase by up to 35 per cent.
Source: www.financialexpress.com