Explained – The political disaster over crop procurement in Chhattisgarh

While farmer protests are usually not waning in Delhi, a political thunderstorm is going down within the state of Chhattisgarh the place CM Bhupesh Baghel and ex-CM Dr Raman Singh are at loggerheads on the query of mismanagement in paddy procurement. At many locations, paddy procurement has been stopped on account of allegedly scarcity of tare and retailer capacities. BJP has alleged that Congress has did not ship its promise of shopping for farmers produce at Rs. 2500/- quintal MSP whereas Congress has blamed BJP for creating confusion.
How was administration in BJP period?
When Dr. Raman Singh promised to offer rice at Rs. 3 per kilo (later Rs 1 per kilo) to lakhs of households, it was thought-about an extra-ordinary political stroke, likes of which later impressed the Food Security Bill in UPA period. It was an enormous success solely due to a strong PDS system which was developed over time. It additionally created debt. The Govt borrowed cash from RBI at zero curiosity whether it is repaid in 4 months, so to avoid wasting curiosity, they developed a system the place paddy was procured rapidly inside 4 months, thus saving cash on curiosity.
They used to offer fast provide to Food Corporation of India (FCI) compared to different states and the remaining was immediately equipped to ration retailers with three months surplus. Tax assortment on excise obligation additionally elevated 5 occasions from 2004. With elevated Computerization, fee to farmers was additionally swift and Chhattisgarh used to obtain about 80% of grains produced compared to about 20% in different states.
What modified?
During election marketing campaign of 2018, Congress promised to pay Rs. 2500 per quintal as MSP to farmers as a substitute of Rs. 1825 as then declared by centre, which proved a key issue to win them elections.  Although Raman Singh in earlier years had additionally supplied to pay Rs. 300 as bonus growing MSP to Rs. 2100, it was disallowed by Central Govt when Modi got here in energy.
Modi Govt has a coverage of ‘no bonus’ however as a substitute they elevated the MSP over years. Hence, as a way to meet the ballot promise, CM Bhupesh Baghel supplied to pay the distinction of Rs. 675 per quintal out of state exchequer’s pocket. But this was once more thought-about as bonus with a special avatar and FCI refused to carry grains from the state.
Last month, Bhupesh Baghel had written to the Prime Minister asking to choose up the paddy the state authorities has procured below the central pool. But the centre had clarified that FCI can’t choose up paddy past the restrict of 24 lakh tonnes because the state has declared bonus above the MSP. According to MOU the centre has signed with states and UTs in regard of crop procurement, if the states and UTs announce bonus above MSP, FCI won’t procure crop past a hard and fast amount, and the remaining must be procured by the states/UTs themselves.
As a end result, the mandis had an overflow of grains and officers weren’t in a position to accommodate the surplus provide from farmers. At many locations, the procurement was halted citing a scarcity of tare and farmers had been requested to carry their very own sacks for storage or had been merely returned.
Political War of Words
Bhupesh Baghel Govt declared that Congress Govt is giving extra money to farmers below a special scheme referred to as Rajiv Gandhi Kisan Nyay Yojana the place they’re giving Rs. 10000 per acre to sugarcane, maize and paddy farmers, thereby successfully growing MSP however not technically so. After issues reached disaster stage, communication was established between centre and state and FCI promised to choose up 24 lakh MT for which CM thanked the PM and hoped they’d take extra (60 LMT) as assured earlier.
But the political storm had already taken place in Raipur the place Congress has blamed BJP for performing in opposition to the curiosity of farmers and BJP has alleged mismanagement within the procurement course of. Dr Raman Singh has questioned – why did Congress promise to purchase each grain at Rs. 2500 by itself when it can not fulfil its personal promise and is now operating to the centre for support and making excuses. He additionally requested why has Congress Govt not been in a position to fulfil its pending quota of 24LMT of final yr, and alleged a whole collapse of the system.
Whereas Congress has alleged that Centre is suggested by state BJP Unit which is creating obstacles in procurement course of. When BJP in-charge of Chhattisgarh D. Purandeshwari requested what occurred to the Rs. 9000 crore facilitated by Centre for procurement course of, the Congress leaders deflected it as mortgage by Markfed and never support by the Centre. Bhupesh Baghel additionally dared BJP to stage a protest in Delhi, whereas Dr. Raman Singh identified a whole collapse of system.
Former Home Minister Brijmohan Agrawal additionally questioned that whereas Congress is busy in blame recreation, grains value crores have been wasted as a result of they weren’t procured. CM Bhupesh additionally misplaced his mood and stated “Raman Singh ko murkho jaisi baatein nahi karni chaiye” (Raman Singh mustn’t communicate like idiots). But it seems that confrontation between the 2 events shouldn’t be de-escalating.
Procurement economics
Any delay in procurement causes a rise curiosity which is in the end borne by state exchequer. With a profitable promised MSP by Congress earlier than the election, the variety of farmers registered to promote paddy has virtually doubled kind 15 lakh in BJP period to 31.5 lakhs now. This is more likely to trigger an additional burden on state and debt is more likely to rise. Crop rotation has now stopped as a result of farmers are incentivised to develop solely paddy which will get a plum MSP. As a end result, well being of soil is believed to take a toll.
There are additionally instances of smuggling in border areas with UP and Jharkhand the place farmers promote to middlemen in cheaper costs as a way to receive the MSP in Chhattisgarh. Reportedly, there are some fraudulent committees concerned in Govt procurement course of and they’re continued to take action this yr and questions are requested whether or not it reeks of a rip-off. Moreover, does it make sense to purchase grains at a really excessive MSP and promote them in PDS for Rs. 1 per kilo? The distinction to be paid by state tax is big and is at the price of many different growth actions which may have in any other case propelled the state to a extra progressive one.