Farmers' Collective Rages Against Union Budget 2024-25: Read Full Story

New Delhi- The Samyukt Kisan Morcha (SKM) has sharply criticized the Union Budget for 2024-25, presented by Finance Minister Nirmala Sitharaman in Parliament on Tuesday. SKM alleges that the budget promotes the corporatization of agriculture at the expense of farmers and workers and undermines the federal structure of the Indian Constitution by encroaching upon the rights of State Governments.

SKM condemned the budget's provisions that favor multinational corporations (MNCs) and the super-rich while failing to address the tax obligations of corporate entities.

The budget includes a 5% tax exemption for MNCs but does not propose any increase in corporate or wealth taxes. In contrast, 67% of Goods and Services Tax (GST) revenue is derived from the poorest 50% of the population, reflecting a regressive tax system that disproportionately affects lower-income individuals.

The SKM criticized the government's neglect of farmers' long-standing demands for a Minimum Support Price (MSP) of C2+50% with guaranteed procurement. The Finance Minister's claim of a 50% margin over costs for major crops is disputed by SKM, which asserts that the current MSP is set at A2+FL+50% instead.

SKM has demanded that the Finance Minister issue a White Paper to clarify this discrepancy and ensure transparency.

Neglect of Farmers' Welfare and Debt Waivers

Despite the Reserve Bank of India transferring Rs. 2.1 lakh crore as surplus to the Union Government for the fiscal year 2023-24, the budget overlooks the demand for a comprehensive loan waiver for farmers and workers. Official records indicate that 31 farmers commit suicide daily in India, yet the government has provided Rs. 14.46 lakh crore in debt waivers to corporate houses over the past decade and is processing another Rs. 10.2 lakh crore through the Insolvency and Bankruptcy Code.

The agriculture sector's allocation in the budget amounts to Rs. 1.52 lakh crore, a mere 3.15% of the total budget.

This represents a decrease from previous years, indicating a declining commitment to agriculture. The budget also fails to repeal GST on essential farm inputs, including seeds, fertilizers, machinery, and spare parts, which exacerbates production costs and threatens food security.

The SKM criticized the budget for ignoring the need to replace the failed Pradhan Mantri Fasal Bima Yojana (PMFBY) and National Disaster Relief Fund (NDRF) with a public sector insurance scheme and for not providing interest-free credit to farmers.

The reduction in fertilizer subsidies is expected to further increase production costs and jeopardize food security, drawing parallels with the crisis faced by Sri Lanka.

The budget's focus on digital public infrastructure and national cooperation policy is seen as an attempt to undermine state rights over agriculture, land, and cooperatives. SKM demands the abolition of the Union Ministry of Cooperation, established in 2019, and advocates for a separate budget for agriculture and rural development.

SKM expressed concerns that the budget's long-term objective is to promote contract farming under corporate control. Agreements between the Indian Council of Agricultural Research (ICAR) and MNCs like Bayer and Syngenta, along with funding for private sector R&D, are viewed as efforts to implement controversial farm laws through indirect means.

The SKM also criticized the budget for not addressing the need to amend the GST Act and restore the taxation rights of State Governments. This centralization of power and discriminatory allocation practices are seen as undermining the federal structure and national unity.

The SKM has called for widespread unity among farmers, workers, women, youth, and students to challenge the budget's pro-corporate stance. They urge farmers to conduct protests across villages and burn copies of the budget to demonstrate their opposition. The specifics of these protests will be determined by the SKM's State Coordination Committees.

Key points

• No MSP@C2+50%, No Minimum Wage, No Wage Hike in MGNREGS

• Cut in Fertiliser Subsidy, taking 1 crore Farmers to Natural Farming will Jeopardise Food Security

• No Recruitment in 30 lakh vacancies in Government and Public Sector

• No Comprehensive Loan Waiver to Farmers and Workers, But 5% Tax Reduction to MNC’s and No Tax on Corporates