YSRCP seeks withdrawal of fertilizer price hike

Hyderabad, June 28, 2013: YSRCP has demanded that the fertilizer prices increased after 2010 be withdrawn with immediate effect. It further suggested that the MSP be fixed taking into account the input costs and not the global availability.

Addressing a press meet, the party’s farmers’ wing convenor M.V.S. Nagi Reddy said it is shocking that the Union Cabinet increased the MSP for paddy by just Rs 60 per quintal. With this, the MSP for paddy goes upto Rs 1310 per quintal, which is an increase of 31% over the 2010 level. These increases pale into insignificance compared to the fertilizer prices that were already increased by 250% in the last two years.  

 “It is important to understand that thanks to increases in the gas prices, the urea prices will also go up by 200% in the least. So, in effect, the input prices have gone up in the range of 300% post-2010 whereas the MSP is increased by just 31%. This is nothing but breaking the back of farming community,” he said.

 “What we have been requesting is the withdrawal of fertilizer price increases. Instead, the Government is playing games by increasing the MSP by 4.8% now. When it comes to cotton which is one of the biggest crops in AP, the MSP was increased by just 2.6%,” he said.

It is shocking that the Government has completely ignored the input costs while fixing the MSP for various crops. They have instead chosen the global availability and prices as the basis for fixing the MSP for crops grown in our country. What a tragedy! Does the Government want India to be import dependent for its food security? Is it not a fact that many Governments in the world are continuing to subsidize their crops ignoring the WTO norms, only to stifle agriculture in countries like ours? Why should Government fall for this trap? For instance, MSP was increased for bajra but not for ragi. Similarly, in pulses, while the MSP for redgram and green gram was increased, the MSP for blackgram was not increased although the input costs are by and lage are the same for all crops. They have done the same thing in respect of oil seeds. They increased MSP for soya beans but not for sunflower.  

Yesterday’s Union Cabinet Decision to increase the natural gas prices by about 200% at one-go linking them to international prices is a big blow to Indian farmers, poor people and above all to manufacturing sector. It is sad to see Government of India bartering away India’s interests to corporate world. The damage they have done to the country is unfathomable; It has virtually broken the back of the country. 

As per Census 2011, 33% of our households do not have access to electricity. With the increase in gas prices, the balance 67% also cannot afford the power. Luckily for us, the Coal India and Singareni collieries are public sector companies. So, they cannot lobby and bribe the Union Government. Otherwise, domestic coal prices too would have gone up by 300%. However, not to lag behind, the Central Government by yielding to international coal traders lobby has not taken any steps so far during the last three years to step up coal production domestically. With the result, we have become import dependant for coal, which is pushing up the prices of coal not only on account of higher international prices but also on account of depreciating rupee.

He further demanded that gas price increases be withdrawn.