Resolving farmers' concerns, bridging State-market divide

As farmer leader Surjit Singh Dallewala's indefinite fast at the Khanauri border in Punjab continues, the Union government has agreed to hold talks with protesting farmers on February 14.

- T.N. Prakash Kammardi

As farmer leader Surjit Singh Dallewala's indefinite fast at the Khanauri border in Punjab continues, the Union government has agreed to hold talks with protesting farmers on February 14. This shift in approach has temporarily eased tensions, raising hopes for resolving the key demand to legalise minimum support prices (MSP).

The Centre must now adopt a conciliatory approach, particularly as it pushes the National Policy Framework on Agricultural Marketing, which farmer groups see as an effort to corporatise agriculture. The key challenge is for the government to lead while balancing farmers' welfare and food security, and carefully bridging the government-market divide.

An amendment to each state's APMC Act can ensure that farmers' produce is never purchased below MSP, with penalties for violations. This should be an integral part of the central policy framework. If private traders fail to procure at MSP—especially after harvest, due to temporary supply-demand mismatches—the government should be prepared to procure up to 25% of total production, as permissible under the Price Support Scheme (PSS). This would demonstrate strong government intervention, stimulate market dynamics, and help stabilise prices above the MSP, all without placing a heavy burden on the government's exchequer.