Agriculture Distress and Farmers' Unrest in Madhya Pradesh: An Exploratory Study - Project Report - aiggpa

 
Agriculture Distress and Farmers' Unrest in Madhya Pradesh: An Exploratory Study - Project Report - aiggpa
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                                      Project Report

            Agriculture Distress and Farmers’ Unrest
           in Madhya Pradesh: An Exploratory Study

                                   Dr. Anitha Govindaraj
                                           August 2018

           Atal Bihari Vajpayee Institute of Good Governance and Policy Analysis
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                  AGRICULTURE	
  DISTRESS	
  AND	
  FARMERS’	
  UNREST	
  IN	
  MADHYA	
  PRADESH:	
  AN	
  EXPLORATORY	
  STUDY	
   iii	
  
           	
  
                                                           Project	
  Team	
  

           Under the Guidance of

                    Akhilesh Argal, Director, AIGGPA.
                    Mangesh Tyagi, Principal Advisor, Centre for Governance, AIGGPA

           Project Coordinator & Author

                    Dr. Anitha Govindaraj, Deputy Advisor, Centre for Governance, AIGGPA

           Research Associate

                    Mr. K.S.Sen. Retd. Deputy Collector, GoMP.

           	
                                                                                                                   iii	
  
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                  AGRICULTURE	
  DISTRESS	
  AND	
  FARMERS’	
  UNREST	
  IN	
  MADHYA	
  PRADESH:	
  AN	
  EXPLORATORY	
  STUDY	
   v	
  
           	
  
                                                                      Table of Contents
           	
  
           Executive Summary	
  ...........................................................................................................	
  ix	
  
           1.	
  Introduction	
  ....................................................................................................................	
  1	
  
                1.1.Objectives of the study	
  ..........................................................................................................	
  1	
  
                1.2 Research Methodology	
  .........................................................................................................	
  2	
  
                1.3 Organization of the report	
  ...................................................................................................	
  2	
  
           2. Status of Agriculture in Madhya Pradesh	
  .................................................................	
  3	
  
              2.1. Type and Size of Landholdings in MP	
  .............................................................................	
  4	
  
              2.2. Cropping pattern of MP	
  ......................................................................................................	
  4	
  
              2.2. Changing Cropping Pattern in MP	
  ..................................................................................	
  5	
  
           3. Status of Agriculture in the Sample districts	
  ............................................................	
  7	
  
              3.1 Socio economic status of farmers in the districts	
  ............................................................	
  7	
  
              3.2 Cropping pattern in the Study Districts	
  ...........................................................................	
  9	
  
           4.	
  Distress	
  in	
  the	
  Rural	
  Areas	
  .....................................................................................	
  11	
  
                4.1. Issues faced by the farmers	
  ..............................................................................................	
  11	
  
                4.2. Crucial reasons for farmers’ distress	
  .............................................................................	
  12	
  
                4.3 Immediate measures to address the farmers’ distress	
  .................................................	
  14	
  
                   4.3.1.Expectations of the farmers	
  ......................................................................................................	
  14	
  
                   4.3.2. Feedback from the Administration & Agriculture department	
  ....................................	
  15	
  
                   4.3.3. Feedback from the Mandi officers	
  ........................................................................................	
  15	
  
                4.4. Violent protests and its trigger factors	
  ..........................................................................	
  16	
  
           6.	
  Distress	
  in	
  MP:	
  An	
  Analytical	
  Evidence	
  ..............................................................	
  17	
  
                6.1 Glut in Production and fall in prices	
  ...............................................................................	
  17	
  
                6.2	
   Mandi Issues	
  ......................................................................................................................	
  21	
  
                6.3 Storage Issues	
  .......................................................................................................................	
  22	
  
                6.4	
  Analysis	
  on	
  MSP:	
  ................................................................................................................	
  22	
  
           7. Conclusion and Recommendations	
  ..........................................................................	
  25	
  

           	
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                  AGRICULTURE	
  DISTRESS	
  AND	
  FARMERS’	
  UNREST	
  IN	
  MADHYA	
  PRADESH:	
  AN	
  EXPLORATORY	
  STUDY	
   vii	
  
           	
  
           List of Tables
           Table 1: Information regarding the sample of the study	
  ..........................................................	
  2	
  
           Table 2: Position of MP in All India Crop Production	
  ............................................................	
  3	
  
           Table 3: Category of farmers in MP	
  ...............................................................................................	
  4	
  
           Table 4: Major crops grown in MP	
  .................................................................................................	
  4	
  
           Table 5: Trend in Area under Major Crops in MP	
  ....................................................................	
  6	
  
           Table 6: Socio economic profile of District	
  .................................................................................	
  7	
  
           Table 7: Price volatility of major crops in MP	
  .........................................................................	
  21	
  
           Table 8: Mandi infrastructure in MP and affected districts	
  ................................................	
  21	
  
           Table 9: Depositor -wise Warehousing position of commodities in MP	
  ........................	
  22	
  
           Table 10: Comparison of MSP and Cost of Production	
  .......................................................	
  23	
  

           Lists of Graphs
           Graph 1: Gross Cropped Area and Irrigated area in MP	
  .........................................................	
  3	
  
           Graph 2: Cropping Pattern in Madhya Pradesh	
  ..........................................................................	
  5	
  
           Graph 3: Average annual rainfall pattern in sample districts	
  .................................................	
  7	
  
           Graph 4: Average size of land holdings in sample districts 	
  ..................................................	
  8	
  
           Graph 5: Percentage of various types of Holdings	
  ....................................................................	
  8	
  
           Graph 6: Cropping pattern in the Districts 	
  ..................................................................................	
  9	
  
           Graph 7: Trend in paddy production, mandi arrivals and prices in MP	
  ..........................	
  17	
  
           Graph 8: Trend in Wheat production, mandi arrivals and prices in MP	
  .........................	
  18	
  
           Graph 9: Trend in Channa production, mandi arrivals and prices in MP	
  .......................	
  19	
  
           Graph 10: Trend in Production, Mandi arrivals and prices of Soybean in MP	
  .............	
  19	
  
           Graph 11:Trend in area, production and productivity of onion in MP	
  ............................	
  20	
  

           	
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                  AGRICULTURE	
  DISTRESS	
  AND	
  FARMERS’	
  UNREST	
  IN	
  MADHYA	
  PRADESH:	
  AN	
  EXPLORATORY	
  STUDY	
   ix	
  
           	
                                                                                                                           	
  

                                                    Executive Summary

           The violent protests by the farmers in Mandsaur, Neemuch Dewas and Ujjain districts
           of MP during first week of June in 2016 resulting in loss of lives and property has
           shocked the entire nation. Farmers protests in a state, which is a recipient of Krishi
           Karman award for consecutive 4 years presenting the double-digit growth figures has
           attracted many critics. Many reasons were quoted for the growing farmers’ unrest in
           the nation. Hence this study was taken up to capture the underlying causes and
           triggers for the farmers’ unrest in the districts.

           The study is primarily based on qualitative information collected through Focus group
           discussions (FGDs) and Interviews conducted with 25 farmers and other stakeholders
           such as officers of district administration, Deputy director- Agriculture/ Horticulture,
           a Mandi Secretary and 4-5 traders each, from the affected districts.

           The sample districts, Mandsaur, Neemuch, Dewas and Ujjain, fall within the agro-
           climatic zone of Malwa plateau, which receives an average annual rainfall of 800-
           1200mm. More than 40 percentage of the GCA is irrigated in the sample districts. All
           the 4 districts suffered drought in 2014 while, Neemuch and Mandsaur suffered
           consecutive drought in the year 2015 too. Economy of all the four districts is
           predominantly agriculture based, with the majority of its population dependent on
           agriculture either as cultivator or as agricultural laborer. The average size of land
           holdings in Dewas (2.37ha) and Ujjain (2.21ha) are well above the state and the
           country’s average. The average size of holdings is 1.64ha in Mandsaur and 1.54 ha in
           Neemuch, which is lower than the state average of 1.78ha. Three fourth of the total
           holdings in Mandsaur and Neemuch are small and marginal, while 60-64 percent in
           Ujjain and Dewas.

           Major crops grown during Kharif season in all the sample districts are Soybean (45-
           50 % GCA) and during Rabi, Wheat and Gram are the major crops in the region.
           Apart from these, Mandsaur and Neemuch are also the leading opium producing
           districts in the country. Onion is grown in less than 2 percent of the GCA in the
           affected districts.

           Farmers in the state suffered consecutive crop failures due to drought during the years
           2014 and 2015, which was followed by a bumper harvest for many crops in the year
           2016. It was widely stated that the farmers were in distress, as they did not get fair
           price for their produce. The statistics showed that the prices of all the major crops
           such as Paddy, Wheat, Gram and Soybean have fallen sharply during 2014-15 from
           2012-13. Soybean and Onion prices fell steeply in 2016. Soybean productivity has
           also declined due to erratic rainfall during 2014 and 2015. Hence farmers across the
           state were in distress due to failed crops in 2014-15.

           	
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                  AGRICULTURE	
  DISTRESS	
  AND	
  FARMERS’	
  UNREST	
  IN	
  MADHYA	
  PRADESH:	
  AN	
  EXPLORATORY	
  STUDY	
   xi	
  
           	
                                                                                                                           	
  

           Trend analysis of wholesale prices and MSP of the major crops showed that for all the
           major crops, annual wholesale prices and the wholesale prices during peak harvest
           seasons were more than the MSP for almost all the years. An analysis on MSP over
           cost of production of crops revealed that under MSP, farmers were able to receive 112
           % margin profit over A2 cost + Family labor. The margin was 44 percent for Soybean
           and 78 percent for Gram over MSP.

           Increased supply of agricultural commodities over supply led to a drop-in price for
           crops in the entire state and this was further exacerbated by the unfavorable regulatory
           environment in Mandis. Farmers had issues in selling their produce in Mandi due to
           confusion among the traders over GST and over crowding in Mandi. Cash crunch due
           to demonetization and Non-cash payments have also created restlessness among the
           farmers.

           Onion price fall cannot be associated with the distress in the affected districts as only
           less than 2 percent of the GCA area is under Onion. It cannot be concluded that the
           violence in the protests were only due to agricultural distress as these stress factors
           were not specific only to the affected districts. The role of several other local factors
           unrelated to agriculture cannot be ruled out in triggering the violent protests in the
           affected districts.

           The following recommendations may be considered to mitigate the agricultural
           distress:

                  1. Farmers need to be insulated against price risk through effective agriculture
                     price policy, procurement policy and risk mitigation measures such as
                     insurance schemes.
                  2. Focus should be given to improve the mandi infrastructure in the state.
                     Adequate storage infrastructure accessible for farmers need to be created in
                     the mandi or in the nearby areas and made available at reasonable
                     prices/arrangement to small and marginal farmers. This would include
                     measures such as credit linked storage services, which would cater to the
                     immediate cash requirements of farmers.
                  3. Introduction of e-NAM in all the mandis would help in increasing
                     transparency and dissemination of market prices to all stakeholders. Modern
                     and scientific methods for grading and weighing of commodities will help in
                     better price discovery for commodities.
                  4. Banking infrastructure in rural areas needs to be strengthened to handle the
                     high volume of transactions during peak harvesting seasons.
                  5. Crop insurance scheme offering cover against price risk will help mitigate the
                     problem of uneconomical prices for agricultural commodities.

           	
                                                                                                                  xi	
  
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                                       AGRICULTURE	
  DISTRESS	
  AND	
  FARMERS’	
  UNREST	
  IN	
  MADHYA	
  PRADESH:	
  AN	
  EXPLORATORY	
  STUDY	
   1	
  
           	
                                                                                                                                                                                                                                                                  	
  
                                                                                                                                                                                                                                                                               	
  
                                                                                                                                                                                                                                              1.	
  Introduction	
  
           With Indian economy gaining momentum of growth in the secondary and tertiary
           sectors, slow pace of growth in the agriculture sector is a serious matter of concern
           with about half of our population dependent on farming for their livelihood. Needless
           to mention that agrarian crisis is deepening across the country which is evident with
           farmers from many states such as Maharashtra, Madhya Pradesh, Rajasthan, Tamil
           Nadu, Uttar Pradesh, Andhra Pradesh, Telangana and Karnataka taking onto streets
           demanding better prices and loan waivers. Moreover, number of farmers’ suicides is
           also increasing alarmingly to an extent of 42 percent in 2015 (NCRB)1. Seven states
           of Maharashtra, Telangana, Andhra Pradesh, Madhya Pradesh, Chhattisgarh,
           Karnataka and Tamil Nadu accounted for 87.5 percent of the total farmers’ suicides in
           the country in 2015. The major reasons stated for the deaths by the study conducted
           by Union agriculture Ministry were frequent crop failures, vagaries of the monsoon,
           pest and disease attacks, Debts and social causes.

           Farming is becoming less profitable and an extremely risk prone enterprise. A farmer
           suffers both during crop failures and bumper crops. The agriculture is increasingly
           becoming unviable due to the shrinking size of the land holdings with about 86% of
           the land holdings less than 2 hectares. Increasing input costs also add to their agony.
           It’s a well-known fact that farmers are not protected adequately against the weather
           and the price risk.

           The violent protests by the farmers in Mandsaur, Neemuch, Dewas and Ujjain
           districts of MP during first week of June in 2016 resulting in loss of lives and property
           has shooked the entire nation. Farmers protests in a state, which is a recipient of
           Krishi Karman award for consecutive 4 years presenting the double-digit growth
           figures has attracted many critics. Many reasons were quoted for the growing farmers’
           unrest in the nation. The basic reason is that the farmers do not get fair price for their
           produce especially, during good harvest. Demonetization is also mentioned as one of
           the reasons for the unrest among the farmers. It is important to understand the ground
           realities as much as the macro economic indicators for making suitable policy
           interventions. Hence an attempt has been made under this study to capture the crucial
           factors that led to violent protests by farmers in the state.

           1.1.Objectives of the study

                                      §                         To study about agricultural status and socio economic condition of the farmers
                                                                 in Madhya Pradesh and affected districts.
                                      §                         To capture underlying causes and triggers for the farmers unrest in the
                                                                 districts.
                                      §                         To suggest the policy level recommendations.

           	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
           1	
  NCRB-­‐	
  National	
  crime	
  Records	
  Bureau	
  

           	
                                                                                                                                                                                                                                                          1	
  
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           1.2 Research Methodology

           The study is primarily based on qualitative information collected through Focus group
           discussions (FGDs) and Interviews conducted with various stakeholders in the
           affected districts of Mandsaur, Neemuch, Ujjain and Dewas. In order to understand
           the issues and reasons behind the restlessness among the farmers, FGDs and
           Interviews were held with atleast 25 farmers from the problem spots of each district
           using structured questionnaires.

           To identify the causes for the recent farmers’ protests from the point of view of
           district administration and other stakeholders, one additional collector, SDM,
           Tehsildar, Deputy director- Agriculture/ Horticulture, a Mandi Secretary and 4-5
           traders from each district were also interviewed using predesigned questionnaires.

                              Table 1: Information regarding the sample of the study

                                       Information Regarding the Sample

                  S.No    Name of      Sample       Sample       Number        Details of Official
                            the        Blocks       Villages    of sample          and other
                          Sample                                 farmers         stakeholders
                          District                                                Interviewed
                   1     Dewas       Bagli      Nevri,              29        Collector, SDM,
                                                Arlavda                       Tehsildar, Patwari,
                   2     Mandsour    Neemuch    Kuchudodh,          28        Sarpanch, vice
                                                Nayakeda                      Sarpanch, Teacher,
                   3     Neemuch     Malhargarh Bhudah,             27        Agricultural officer,
                                                Takravadh                     Mandi Secretary and
                                                                              Traders.
                   4     Ujjain      Ujjain     Chayan,             26
                                                Pipalia
                                                Ragoh

           The farmers from the villages where the violent protests occurred were chosen to
           understand the feel at the ground. Information regarding the villages visited is
           tabulated above. (Table-1)

           1.3 Organization of the report
           The information collected from the field visits were summarized and discussed in
           chapter 4. Chapters 2 and 3 are targeted to the readers who are not acquainted with the
           status of agriculture in MP and the affected districts. In chapter-5, facts and issues that
           emerged during the interviews and FGDs about the violent protests are discussed. An
           effort is made in chapter-6, to find data based evidences to support the issues that
           have risen during the field study. Actionable points are recommended in the chapter-7
           in recommendations.

           	
  
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                      AGRICULTURE	
  DISTRESS	
  AND	
  FARMERS’	
  UNREST	
  IN	
  MADHYA	
  PRADESH:	
  AN	
  EXPLORATORY	
  STUDY	
   3	
  
           	
                                                                                                                                                                            	
  
                                                                                                                                                                                         	
  
                                    2. Status of Agriculture in Madhya Pradesh
           Agriculture is the mainstay of the state economy providing employment and
           livelihood options to about 70 percent of the population. In this decade, Madhya
           Pradesh has achieved double-digit growth in agriculture sector since 2010-11
           consistently for 5 -6 years with about 14.6 % in 2014-15, while that of entire country
           is volatile since 2011 from 8.6% in 2010-11 to -0.2% in 2014-15 and 0.8% in 2015-
           16. The state has been receiving Krishi Karman award for consecutive 5 years since
           2011-12 for contributing maximum to the food grain production in the country.

           Madhya Pradesh is in the list of top 3 producing states in many crops (table-2).
           Madhya Pradesh is the leading producer of pulses and oilseeds in India contributing to
           about one-fourth of the country’s production. MP is the leading producer of Soybean
           contributing to more than 50 percent share in All India production.

                                             Table 2: Position of MP in All India Crop Production

           S.No               List of crops                                          State                             % Share in                      Rank
                                                                                     Production in                     All India
                                                                                     MT                                production
           1                  Wheat                                                  17.9                              18.2                            2
           2                  Maize                                                  3.2                               12.1                            3
           3                  Chick pea/Gram                                         3.5                               37.0                            1
           4                  Red gram/Tur                                           1.5                               27.0                            3
           5                  Total Pulses                                           6.3                               27.2                            1
           6                  Total Food grains                                      33.0                              12.0                            2
           7                  Rapeseed & Mustard                                     0.9                               11.5                            2
           8                  Soybean                                                7.2                               51.3                            1
           9                  Total Oilseeds                                         8.7                               27.0                            1
           (Source: Economic Survey, 2017-18)

                                        Graph 1: Gross Cropped Area and Irrigated area in MP

                  300	
                                                                                                                                                 50	
  
                                                                                                    41	
                42	
               42	
                44	
  
                  250	
                                                         39	
  
                                                             37	
                                                                                                       40	
  
                                        34	
  
                  200	
  
                                                                                                                                                                        30	
  
                  150	
  
                              220	
               225	
               231	
              240	
               238	
               237	
              242	
               20	
  
                  100	
  
                    50	
                                                                        99	
              101	
               100	
                107	
        10	
  
                                    74	
                 82	
               90	
  
                      0	
                                                                                                                                               0	
  
                              2010-­‐11	
   2011-­‐12	
   2012-­‐13	
   2013-­‐14	
   2014-­‐15	
   2015-­‐16	
   2016-­‐17	
  

                                             GCA	
  	
  (lakh	
  ha)	
                Irri.area	
  (	
  Lakh	
  ha)	
                 %	
  irri.	
  area	
  

           (Data Source: landrecords.mp.gov.in )

           	
                                                                                                                                                                    3	
  
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           The net sown area is about 50 percent of the total geographical area in the state. The
           area under irrigation has shown 10 percent increase from 34 percent in 2010-11 to 44
           percent in 2016-17 and GCA also has shown an increase of 10 percent in last 7 years
           (Graph-1). Average rainfall received by the state is about 950mm. With about 56
           percent of the gross cropped area under rainfed farming, Madhya Pradesh farmers are
           highly prone to natural calamities like drought, hailstones and flood.

           2.1. Type and Size of Landholdings in MP

           Average size of holdings in the state is 1.78ha, which is far better than that of
           country’s average of 1.15ha. Majority of the holdings in the state are marginal
           holdings (44 %) with around 23 percent of the holdings having a size of less than 0.5
           ha. Nearly, one-third of the holdings in MP fall under the category of marginal and
           small holdings (table-3).

                                       Table 3: Category of farmers in MP
            Type of farmer Area in Ha                   % of Total operational holdings

                                                         Number of             Area
                                                          holdings
           Marginal               < 0.5                     22.6                3.5
                                  0.5 to 1                  21.2                8.6
           Small                  1 to 2                    27.6               21.9
           Semi Medium            2 to 3                    12.6               16.8
                                  3 to 4                     6.1               11.1
           Medium &               > 4 ha                     9.9               38.1
           Large
           (Source: Agricultural Census 2010-11)

           2.2. Cropping pattern of MP

           Major crops grown in the state are listed in the table-4. Paddy, Soybean, Maize,
           Jowar, Moong, Urad, Tur and Cotton are the major Kharif crops and Wheat, Gram,
           Massor, Peas, Linseed and Mustard are the major Rabi crops.
                                  Table 4: Major crops grown in MP

                  S.No   Category                               Major crops in MP
                    1    Food grains         Wheat, Jowar, Maize & Paddy
                    2    Pulses              Gram, Masoor and Tur
                    3    Oilseeds            Soybean, Rapeseed &Mustard, Linseed
                    4    Vegetables          Tomato, Potato, Onion, Green peas, Cauliflower &
                                             Bhendi,
                   5     Fruits              Guava, Orange, Banana, Papaya & Mango,
                   6     Spices &            Chillies, Garlic, Coriander, Ginger & Turmeric
                         Condiments
           (Source: Annual report of GoMP, 2017)

           	
  
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                    AGRICULTURE	
  DISTRESS	
  AND	
  FARMERS’	
  UNREST	
  IN	
  MADHYA	
  PRADESH:	
  AN	
  EXPLORATORY	
  STUDY	
   5	
  
           	
                                                                                                                             	
  
                                                                                                                                          	
  
           Soybean and Wheat are the major crops occupying about 50 percent of the GCA
           followed by Paddy and Gram (8.8%). Maize and Urad is also grown in about 4
           percent of GCA (graph-2). Apart from major producers of Foodgrains, Pulses and
           oilseeds, MP is also among the leading producers vegetable and fruits in the country.
           MP is among the top 5 states in the production of Tomato, Onion and potato with
           about 1.6 percent of GCA under vegetables. In 2016-17, only 0.2 percent of cropped
           area is under fruits and among the fruits, Citrus, Orange and Banana are the major
           crops in MP.

                                             Graph 2: Cropping Pattern in Madhya Pradesh

                                        Rapeseed	
  &	
  
                                        Mustard,	
  1.5	
  
                                         Cotton,	
  
                         Spices	
  &	
       1.4	
               Others,	
  14.0	
  
                      Condiments,	
  1.8	
  
                                Fruits,	
  0.2	
  
                                                                                         Wheat,	
  26.5	
  
                       Vegetables,	
  
                          1.6	
  
                                                                                             Paddy,	
  8.8	
  
                                        Maize,	
  4.2	
  
                  Tur,	
                                      Gram,	
  
                  2.0	
   Urad,	
  4.3	
                       8.8	
  
                                                                             Soybean,	
  24.9	
  

           (Data Source: landrecords.mp.gov.in)

           2.2. Changing Cropping Pattern in MP

           During last 7 years, there are changes in the cropping pattern, as farmers tend to grow
           crops, which have minimum price risk and weather risk coefficients. Various studies
           also reported that the Minimum support price policy of the Government also
           influences the cropping pattern. Earlier, MSP was fixed only for the major food grains
           such as paddy and wheat. But, now as policy planners realizing the impact of MSP on
           the cropping pattern, have brought pulses such as Arhar, Urad, Moong and Gram also
           under the MSP net in order to promote pulse cultivation in the country (CACP, 2017).

           In table-5, the trend in area under major crops during last 7 years shows that area
           under Urad and Onion has increased significantly to an extent of 84 percent and 105
           percent respectively. Area under Gram and Tur (Arhar) has fallen down by 26 percent
           in this decade. Urad is a safer option than Tur and Soybean as it is hardy crop and
           requires less moisture. The productivity of the Urad is also good in MP (900 ka/ha) as
           compared to national average of 680kg/ha in 2016-17.

           	
                                                                                                                     5	
  
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                                   Table 5: Trend in Area under Major Crops in MP

                                   Area under Major Crops in Madhya Pradesh ( 000’ hectare)

                  Year       Paddy    Wheat   Maize   Gram   Urad   Tur    Soybean   Onion    Veg   Fruits
                  2010-11     1574    4633     838     638    560   2882     5538     56      261     48
                  2011-12     1693    5248     449     532    606   2624     5772     68      292     49
                  2012-13     1791    5601     855     455    628   2716     6173     73      306     50
                  2013-14     1882    6123     852     396    581   2774     6543     79      323     50
                  2014-15     2058    6351     885     375    665   2446     6167     82      332     54
                  2015-16     1999    6050     899     384    863   2198     6338     111     382     58
                  2016-17     2136    6410    1006     474   1032   2127     6035     116     398     59
                      %
                   change
                              36       38      20      -26    84     -26      9       105     52      23
                   in Last
                   7 years
           (Data Source: landrecords.mp.gov.in)

           MSP procurement policy and the bonus price fixed by the government also influence
           the cropping pattern, as farmers prefer to play safe against high price risk. Madhya
           Pradesh government has fixed a high MSP rate of Rs 8/kg ie. 30 percent more than
           the MSP fixed by the GOI for onion. Area under fruits and vegetables has also
           increased by 52 and 23 percent respectively.

           	
  
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                  AGRICULTURE	
  DISTRESS	
  AND	
  FARMERS’	
  UNREST	
  IN	
  MADHYA	
  PRADESH:	
  AN	
  EXPLORATORY	
  STUDY	
   7	
  
           	
                                                                                                                                    	
  
                                                                                                                                                 	
  
                          3. Status of Agriculture in the Sample districts
           The sample districts, Mandsaur, Neemuch, Dewas and Ujjain, where the violent
           protests occurred in 2017, fall within the agro-climatic zone of Malwa plateau, which
           receives an average annual rainfall of 800-1200mm. Malwa region is better
           positioned in the state in term of status of agriculture as compared to backward
           Bundhelkhand and Baghelkhand regions. More than 40 percentage of the GCA is
           irrigated in the sample districts. The rainfall pattern (Graph-3) in the districts shows
           that there was drought in all the four districts in 2014 while, Neemuch and Mandsaur
           suffered consecutive droughts in the year 2015 too.

           Graph 3: Average annual rainfall pattern in sample districts

                                                     Rainfall	
  Pattern	
  in	
  mm	
  
                                          1273	
  
                      1111	
                                               1521	
           1203	
  
                                        1295	
  
                      1084	
                                                                                        874	
  
                                                             649	
         742	
            1113	
  
                                        1111	
  
                      1081	
                                  831	
                                                 801	
  
                                                                              901	
         1037	
  
                                        1413	
              802	
                                                       669	
  
                      1185	
                                               1258	
            924	
  
                                                               683	
                                                   810	
  

                      2011	
            2013	
              2014	
         2015	
           2016	
                  2017	
  

                                       Dewas	
             Mandsaur	
         Neemuch	
                Ujjain	
  

           (Source: cmdashboard.mp.gov.in)

           3.1 Socio economic status of farmers in the districts

                                         Table 6: Socio economic profile of District

           Particulars                    Dewas              Mandsaur           Neemuch                Ujjain                     MP
           Cultivators                     35.0                41.4.              42.0                  32.2                      31.2
           Agrl. labor                     41.8                39.2               32.6                  33.7                      38.6
           Literacy rate                   69.4                71.8                70                   72.3                      63.7
           SC population                   18.7                18.6               13.5                  36.4                      16.0
           ST population                   17.4                2.47                8.6                   2.5                      21.0
           (Source: Census 2010-11)

           The economic status of the farmers in the districts are fairly stable and good in Dewas
           and Ujjain while in Mandsaur and Neemuch, the economic condition of the farmers
           was found to be medium as opined by majority of the farmers, officers and mandi

           	
                                                                                                                            7	
  
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           personale interviewed. Economy of all the four districts is predominantly agriculture
           based, with the majority of its population dependent on agriculture either as cultivator
           or as agricultural labor (table-6).

           The average size of land holdings in Dewas and Ujjain are well above the state and
           the country’s average. (Graph-4). The average size of holdings is 1.64ha in Mandsaur
           and 1.54 ha in Neemuch, which is lower than the state average of 1.78ha.

                    Graph 4: Average size of land holdings in sample districts (in Ha)

                                      2.37	
  
                                                                                                                      2.21	
  
                                                                1.64	
                                                                          1.78	
  
                                                                                         1.54	
  
                                                                                                                                                                             1.15	
  

                                 Dewas	
              Mandsaur	
   Neemuch	
                                      Ujjain	
                     MP	
                     India	
  

           (Data Source: Agricultural census 2010-11)

                                              Graph 5: Percentage of various types of Holdings

                                                  48	
                         49	
  
                                                                                                                                               44	
  

                   38	
  

                                                                                                                 31	
                                                                   Marginal	
  
                                                                                        28	
                              30	
  
                                                           27	
                                                                                     28	
  
                            26	
                                                                                                                                                        Small	
  
                                                                                                                              22	
  
                                20	
  
                                                                                                                                                        19	
                            Semi-­‐
                                                              17	
                        16	
                                                                                          Medium	
  
                                     14	
                                                                                      14	
                                                     Medium	
  

                                                                    8	
                                                                                      9	
  
                                                                                                 6	
                                                                                    Large	
  

                                          2	
                                                                                          2	
                           1	
  
                                                                       1	
                               0	
  

                      Ujjain	
                    Mandsaur	
                   Neemuch	
                           Dewas	
                     MP	
  State	
  
           (Data Source: Agricultural census 2010-11)
           (Note: Marginal; Less than 1ha, Small; 1-2 ha, Semi-medium; 2-4ha,
           Medium; 4-10ha, Large > 10ha)

           About 75 percent of the farmers in Mandsaur and Neemuch are small and marginal
           farmers in which nearly 50 percent of them have marginal holdings with the holding
           size less than one hectare or 2.5 acres. In Ujjain, there are 20 percent semi-medium
           (2-4ha), 14 percent medium, 26 percent small and 38 percent marginal holdings. In

           	
  
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                     AGRICULTURE	
  DISTRESS	
  AND	
  FARMERS’	
  UNREST	
  IN	
  MADHYA	
  PRADESH:	
  AN	
  EXPLORATORY	
  STUDY	
   9	
  
           	
                                                                                                                                                                                                   	
  
           Dewas District, small and marginal holdings account for 72 percent of the total                                                                                                                      	
  
           holdings.

           3.2 Cropping pattern in the Study Districts

           In all the 4 sample districts, soybean is the major crop during the Kharif season (45-
           50%) and wheat during Rabi season (15-25%).

                                          Graph 6: Cropping pattern in the Districts (2016-17)

                                         Others	
                                                            Opium,	
  
                                                                                                                                                Gnut,	
  1	
  
                                          7%	
                                                                0.5	
  

                                                                          Maize	
                          Onion,	
  1	
                 Total	
  
                                                      Wheat	
              4%	
                                                         spices	
  ,	
  
                     Opium	
                                                                               Rapeseed	
                                     Wheat,	
  15	
  
                                    Spices	
          16%	
                       Urad	
  
                      2%	
                                                                                    &	
                         11	
  
                                     12%	
                                          3%	
  
                                                                                                           Mustard,	
  
                                                                                      Gram	
                  5	
                                                  Maize,	
  6	
  
                  Orange	
                                                                                                                                                           Urad,	
  1	
  
                   1%	
                                                                3%	
  
                                                                                                                                                                                     Gram,	
  2	
  

                                                 Soybean	
                                                                         Soybean,	
  
                  Rapeseed	
                       46%	
                                                                              45	
  
                     &	
  
                  Mustard	
  
                    6%	
                                     Mandsaur	
                                                                                              Neemuch	
  
                                                                                                 	
                                                                                                      	
  
                                                                                                                                 Potato	
  
                  Rapeseed	
                       Others	
                                                           cotton	
     1%	
   Others	
  
                     &	
       Onion	
   Potato	
   2%	
                                                       Tur	
   1%	
  
                                          1%	
                                                                                   Onion	
    4%	
  
                  Mustard	
     1%	
                                                                           1%	
  
                    4%	
                                                                                                          2%	
  
                                                                                                                Maize	
  
                                                                                                                 2%	
  

                                                           Wheat	
                                                           Gram	
  
                                                           29%	
                                                             15%	
                               Soybean	
  
                                                                                                                                                                   47%	
  

                                 Soybean	
                     Gram	
                                                           Wheat	
  
                                   52%	
                       11%	
                                                            27%	
  

                                                                       Ujjain	
                                                                                              Dewas	
  
                                                                                                    	
                                                                                                   	
  
           (Data source: landrecords.mp.gov.in)

           Mandsaur and Neemuch are the leading opium producing districts in the country. It is
           a Rabi season crop and is cultivated from October to December. Crops such as Gram,
           Maize, Rapeseed & Mustard, Urad and Cotton. Onion and Potato are also grown in
           this belt. Garlic and Coriander are the major spices grown in Mandsaur and Neemuch.

           Major produce traded in the Mandi are:
              § Dewas: Wheat, Maize, Soybean, Chick pea (Gram), Garlic, Black Gram
                  (Urad), Raida, Alsi, Fenugreek ( Methi) and Masoor.
              § Ujjain: Soybean, Chick pea (Gram) and Wheat

           	
                                                                                                                                                                                         9	
  
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                  §   Mandsaur: Wheat, Chick pea (Gram) and Garlic.
                  §   Neemuch: Soybean, Wheat, Garlic, Chick pea (Gram), Black Gram (Urad),
                       Raida, Alsi, Fenugreek ( Methi) and Masoor

           	
  
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                    AGRICULTURE	
  DISTRESS	
  AND	
  FARMERS’	
  UNREST	
  IN	
  MADHYA	
  PRADESH:	
  AN	
  EXPLORATORY	
  STUDY	
   11	
  
           	
                                                                                                                            	
  
           	
  
                                              4.	
  Distress	
  in	
  the	
  Rural	
  Areas	
  
           In this chapter, the major reasons for the distress among the farmers based on the
           outcome of the focus group discussions and Interviews conducted in the affected
           districts with various stakeholders such as farmers, district administration, Panchayat
           secretaries, teachers, mandi officials, Agriculture department officials are discussed.

           4.1. Issues faced by the farmers

           Farmers, when asked about the issues faced in various aspects such as production,
           marketing, storage etc., their responses are discussed below.

                   A. Production related Issues:
                    § The cost of cultivation has increased.
                    § Water shortage and Lack of adequate irrigation facilities.
                    § Costly seeds and fertilizers and unavailability of quality inputs in time.
                    § Labor shortage.
                    § Low productivity.
                    § Damage due to wild animals and natural calamities
                    § Electricity problem.

                  B. Marketing and Mandi related Issues

           In Mandi, Open auction is done for selling the farmers produce and 2 percent is
           charged as Mandi fee officially. The quality of the produce is determined through
           visual observations and there is no scientific means of grading and hence often
           subjected to bias. Price of the produce is fixed based on the quality of the produce and
           market rate in Indore Mandi.

           Following were issues stated by the farmers regarding marketing and Mandi.

                    •   Drastic fall in prices of the produce.
                                                                                      Prices – Sarpanch, Neemuch
                    •   Farmers are highly dissatisfied with                       Crops       2014-15      2016-17
                        Mandi due to overcrowding in Mandi                        Soybean     Rs. 5,000    Rs. 2,800
                        and hence farmers have to wait in long                    Mustard     Rs. 4,500    Rs. 3,200
                        queues up to 2km for 3-4 days to sell                     Kalonji Rs. 26,000       Rs. 8,000
                        their produce. It is stated that the                        Alsi      Rs. 9,500    Rs. 4,000
                        farmer from other states such as
                        Rajasthan sell their produce in Mandsaur mandi especially garlic. Hence the
                        local farmers have to wait for 3-4 days to sell their produce.
                    •   Weightman (Hammal) in mandi, demand extra charges for weighing to fill his
                        pocket. At times, he even charges double the actual cost during the peak
                        season. If the farmer denies to pay, he will be made to wait for 2-3 more days
                        to weigh his produce.

           	
                                                                                                                   11	
  
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                    •   Small and marginal farmers are unable to sell in Mandis as the mandi has the
                        capacity to weigh only tractors and trolleys and the marginal farmers cannot
                        afford to hire a trolley/tractor paying Rs. 1500/day and wait for 3-4 days to
                        sell in Mandi and hence they had to sell to private traders at a price (30%)
                        lower than the MSP.
                    •   There is unrest among the Farmers due to non-cash payment and delayed
                        payments through NEFT /cheques and it takes 15 days to 1 month to receive
                        the payment in their account.

                  C. Storage Issues

           In Mandsour and Neemuch, there is no storage facility available in Mandi and the
           receipts are very high. In Ujjain and Dewas, storage facilities are available in Mandi
           at free of cost.
                § The storage charges are very high in the private warehouses.
                § Farmers needs free storage infrastructure in the areas near Mandi premises.
                § Even if the produce is stored for 3-4 months and then sold, farmers are not
                   able to get fair price to cover the storage costs.

                  D. Crop Insurance

                  Farmers have lost their confidence in the crop insurance schemes and they say that
                  they have taken crop insurance, as it is compulsory for loanee farmers. They were
                  unhappy with crop insurance programmes due following issues.
                     § The crop loss assessment is not fair and the amount of compensation is too
                        low
                     § The compensation is also delayed
                     § The sum insured is 30-35 percent in cooperative banks while it is 10-12
                        percent in other banks

           4.2. Crucial reasons for farmers’ distress

           Majority of the respondents from all the categories stated that farmers were in distress
           due to the following prime issues:

                            §   Farmers were not happy with the government in handling farmer’s
                                 issues and they felt that they were not at all heard.
                           §    Farmers did not get fair price for their produce. The price received
                                 could not even cover the cost of production.
                            §   Onion being the bumper crop, prices fell drastically even to the extent
                                 of Rs.1/kg.
                            §   In Mandi, there were long queues to sell the produce and hence
                                 farmers had to wait for 3-4 days to sell their produce.
                            §   Moreover, farmers were highly irritated due the non-cash payment in
                                 Mandi. The payment in banks through Cheques /NEFT was delayed to
                                 the extent of 15-30 days.
                            §   Due to GST, the purchase of produce by the traders has dropped
                                 suddenly.

           	
  
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                     AGRICULTURE	
  DISTRESS	
  AND	
  FARMERS’	
  UNREST	
  IN	
  MADHYA	
  PRADESH:	
  AN	
  EXPLORATORY	
  STUDY	
   13	
  
           	
                                                                                                                                   	
  
                                §    Farmers were disappointed with the government for lack of initiatives
                                      on ground after making huge promises such as doubling of farmers’
                                      income in 5 years.

                                                                                                        Traders	
  
                  Farmer	
   already	
   in	
                      Bumper	
  
                                                                                                        clearing	
  stocks	
  
                  Debt	
   due	
   to	
   crop	
                   production	
  	
   	
                in	
  panic	
  due	
  to	
  
                  failures	
  in	
  previous	
  
                                                                                                        GST	
   	
  
                  seasons	
  
                  	
  
                                                                 Lack	
  of	
  Demand	
  	
  
                                                                 &	
  Abundant	
                       Traders	
  stopped	
  
                                                                 Supply	
  in	
  Mandi	
               purchasing	
  from	
  
                   Cash	
  crunch	
  	
                          	
                                    farmers	
  due	
  to	
  
                                                                                                       GST	
   	
  
                                                                 Sharp	
  fall	
  in	
  
                                                                 prices	
  not	
  even	
  
                                                                 to	
  cover	
  cost	
  of	
          Farmers	
  Unable	
  to	
  
                                                                 production	
   	
                    sell	
  the	
  produce	
  in	
  
                   Increase	
  in	
                                                                   Mandi	
  
                   Input	
  prices	
                                                                  	
  
                   due	
  to	
  GST	
  
                   	
                                                                                    Non-­‐cash	
  &	
  
                                                                                                         Delayed	
  Online	
  
                                                                                                         payments	
  
                                                                 Accumulated	
                           	
      	
  
                                                                 Distress	
  	
  
                   Farmers	
  unable	
  
                   to	
  buy	
  inputs	
                                                                     Inadequate	
  
                   for	
  the	
  next	
                                                                      banking	
  
                   season	
  crop	
   	
                                                                     infrastructure	
  in	
  
                                                                                                             rural	
  areas	
  

                                      Figure-­‐	
  1	
  Reasons	
  for	
  the	
  Distress	
  among	
  farmers	
  

           Farmers were already in distress due to drought/insufficient rainfall during 2013-2015
           and were debt ridden. With good monsoon and bumper production in 2015-17, they
           were expecting better returns from agriculture, so that they can cover the previous
           years losses. Much to their dismay, prices of Gram, Soybean, and Onion etc. fell to
           the bare minimum and farmers could not even cover their cost of production. Glut in
           Onion production has led to fall in prices to the extent of 20 Paise /kg in Neemuch
           Mandi. As per the estimates of National horticultural research and Development
           board, the cost of production of Onion is around Rs.8.27/Kg.

           	
                                                                                                                          13	
  
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           Demonetization, GST and Digital payments, all in a row, executed at a short span of
           time from December 2016, have created restlessness among the farmers. Paucity of
           the funds/cash crunch had upset the lives of rural people largely as they do most of
           their transactions with cash. Adding to their irony, farmers could not sell their
           produce in mandi, as they were no takers for their produce due to the GST.

           Forced Digitization has also irked the farmers. Farmers generally sell their harvested
           produce and purchase the inputs needed for the next crop using the cash money
           received from buyers. Every farmer interacted, insisted strongly that they need their
           payment in cash because, it takes minimum 15 days to get their payments through
           Cheque/NEFT. Banks in rural areas are also not having adequate infrastructure, funds
           and staff to handle the rush during the peak seasons. Farmers have to make atleast 2-3
           visits to get their money and it certainly hurts the farmers as its cost their labor and
           transport charges. They also need to make a separate visit to market to buy the inputs
           for the next crop and other necessities after receiving the money.

           4.3 Immediate measures to address the farmers’ distress

           The immediate measures that are needed to reduce distress in agriculture as per the
           expectations of the farmers and perceptions of the different stakeholders interviewed
           are discussed here.

           4.3.1.Expectations of the farmers

                  1. MSP should be announced even before sowing season and the MSP should be
                      more than the cost of production of the produce.
                  2. Farmers demand immediate loan waiver.
                  3. The production of crops should be estimated well ahead and necessary
                      arrangements /infrastructure created for the procurement of crops under the
                      MSP.
                  4. Farmers need a permanent solution/ pricing policy to ensure fair price for their
                      produce.
                  5. Marginal and small farmers should be given priority while, procurement under
                      MSP in Mandi.
                  6. The fertilizer subsidy should be given in cash before sowing.
                  7. The cash payment should be done for their produce.
                  8. Electricity bills should be forgiven.
                  9. Food processing plants needs to be setup for perishable crops and free storage
                      facilities in mandi should be provided for farmers.
                  10. Farmers also expect more subsidies for cold storage units for Potato, which is
                      currently 35 percent.

           	
  
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                  AGRICULTURE	
  DISTRESS	
  AND	
  FARMERS’	
  UNREST	
  IN	
  MADHYA	
  PRADESH:	
  AN	
  EXPLORATORY	
  STUDY	
   15	
  
           	
                                                                                                                          	
  
           4.3.2. Feedback from the Administration & Agriculture department

                  1. The crop production should be estimated well ahead of harvesting and
                      necessary storage and marketing arrangements should be done. The Minimum
                      support price should be decided well before, based on the cost of cultivation.
                  2. Immediate cash payment should be made atleast upto Rs. 50,000, as farmers
                      need cash to buy farm inputs. They usually align their purchase schedule after
                      selling their produce.
                  3. Farmers should be made available easy crop loans, term loans and loans for
                      small-scale industries.
                  4. Banking Infrastructure in the rural areas should be improved/expanded.
                  5. Farmers cannot pay in cash and purchase seeds. The earlier seed subsidy
                      scheme is better than the present scheme of Cash benefit transfer (CBT) now.
                      Government should reconsider the seed subsidy in CBT.
                  6. Seed subsidy should be given to the farmers before the sowing season.
                  7. Farmers should be given subsidy on purchasing farm implements from Agro
                      and also the rate of implements should be lesser than the market rate, which
                      currently is higher than the market rate.
                  8. Farmers are not happy with Cash benefit transfers.
                  9. The procedures and processes for availing the benefits of various schemes
                      need to be simplified.
                  10. There should be a Krishi/ Agri clinic in every Panchayat for dissemination of
                      information on technical aspects. Currently, one village extension officer has
                      to cover around 20-35 villages and hence, they are unable to transfer the
                      technology to all the villages.
                  11. Adequate storage infrastructure for onion needs to be created. Farmers will be
                      encouraged to create more storage structures, if the subsidy for storage
                      structures is increased from 50 percent upto 75 percent.
                  12. Food processing needs to be promoted especially, for Onion, Tomato and
                      Potato.
                  13. Farmers should be encouraged to take up allied businesses such as mushroom
                      units, bee keeping etc.
                  14. Need to give more focus on crop insurance and gradually reduce subsidies and
                      compensations.
                  15. A separate division for marketing should be created under agriculture
                      department who can address the marketing issues immediately in the districts.
                  16. Farmers’ commission should be created at the state level to address their
                      issues immediately.
                  17. The recommendations of the Swaminathan committee report need to be
                      implemented.
                  18. The pension scheme for farmers should be considered.

           4.3.3. Feedback from the Mandi officers

                  1. Spot cash payment should be done.
                  2. Necessary arrangements should be made for the procurement at MSP.
                     Based on the quantum of arrivals in Mandi, the extension of mandi should be
                     done. Tin shade areas should be expanded.

           	
                                                                                                                 15	
  
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                  3. The weighing capacities need to be increased.
                  4. Adequate number of staff needed in mandi.
                  5. Neemuch Mandi known for arrivals of Medicinal crops. There is need for
                     expansion and modernization of mandi.
                  6. E-NAM should be implemented as early as possible.

           4.4. Violent protests and its trigger factors

           Distressed Farmers across Madhya Pradesh had announced Bandh on 5th June, 2016
           protesting for fair price for their produce and waiver of their loans. The initial
           problem started in Pipalia Mandi between traders and farmers and violence erupted
           which had spiraling effect across the neighboring districts too. The social media has
           also played a vital role in the spread of violence. It’s also stated that the Opium mafia
           also played a huge role in hatching upon the mood of the distressed farmers in
           triggering the violence in the region. It was also opined that there were political
           motives behind the violence and it’s is to be noted that the affected districts are
           dominated by the Patidar community who had actively participated in the farmers
           agitation. Majority of the stakeholders interviewed stated that 90 percent of the
           persons involved in protests were unemployed youth.

           In Dewas and Ujjain, violence was triggered by farmers death due to police firing in
           Mandsaur. Announcement of Rs. 1 crore compensation to the families of Mandsaur
           firing victims also boosted the confidence of the youth for rioting. It was stated that,
           some protesters stood in front of the police and district administration with petrol
           bombs shouting “shoot us if you have guts, we will get one crore”.

           There is no particular district specific reason for distress and violent protests in the
           affected area, because the situation of farmers’ distress is almost the same across the
           state. The mood of the mob mattered and triggered the violence.

           It was requested by the officers of the district administration that to handle the law
           and order situation effectively, the officers should be given special powers to control
           violence.

           	
  
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                   AGRICULTURE	
  DISTRESS	
  AND	
  FARMERS’	
  UNREST	
  IN	
  MADHYA	
  PRADESH:	
  AN	
  EXPLORATORY	
  STUDY	
   17	
  
           	
                                                                                                                                                	
  
           	
  
                                      6.	
  Distress	
  in	
  MP:	
  An	
  Analytical	
  Evidence	
  
           The critical reasons that led to widespread distress among farmers as stated by various
           stakeholders during the primary survey were glut in production, price volatility and
           issues related to mandi, marketing and storage. An attempt is made to analyze these
           factors using the statistical facts in this chapter.

           6.1 Glut in Production and fall in prices

           Successful crop after two successive droughts has been stated as one of the major
           reasons for the sharp fall in prices, which in turn has resulted in unrest among the
           farmers. For analyzing this cause for the unrest, four major crops of the state ie.
           Paddy, Wheat, Gram and Soybean have been chosen for discussion. Through
           graphical presentation, the trend in production, procurement, Mandi arrivals,
           wholesale prices (yearly & harvest season) and MSP are compared for the major
           crops.

                                Graph 7: Trend in paddy production, mandi arrivals and prices in MP

                  45.0	
                                                                 42.3	
                 3000	
  
                                                                                                     39.1	
                Production	
  in	
  
                  40.0	
                                                                                                   lakh	
  tonnes	
  	
  
                                                            36.3	
        35.5	
  
                                            2452	
                                                              2500	
  
                  35.0	
                                                                                                   Mandi	
  arrivals	
  	
  
                                                                                                2135	
  
                  30.0	
              27.8	
     28.5	
                                                         2000	
  
                                                                                     1783	
  
                                                                                                                           Procured	
  Qnty	
  	
  
                  25.0	
   22.3	
  
                                                                       1591	
                                   1500	
  
                  20.0	
  
                                                                                                                           Wholesale	
  price	
  
                                                                                                                           in	
  	
  Rs/Qntls	
  
                  15.0	
                                                                                        1000	
  
                                                                                                                           MSP	
  	
  
                  10.0	
  
                                                                                                                500	
  
                    5.0	
  
                                                                                                                           Wholsale	
  price	
  
                    0.0	
                                                                                       0	
        in	
  Harvest	
  
                              2011	
   2012	
   2013	
   2014	
   2015	
   2016	
   2017	
                                 season	
  

           (Data source: Indiastat & NAN, GoMP)

           In graph-7, trend in paddy production and prices are illustrated. Though Paddy is not a
           major crop in the affected districts, it is one of the major crops in the state
           contributing to 8.8 percent of the gross cropped area. It is obvious from the graph that,
           there is a decline in production and prices in 2015, followed by the increase in
           production in 2016 and 2017. It is interesting to note that the though the wholesale

           	
                                                                                                                                       17	
  
122
8590/2019/GOV

           price of the paddy has increased, the MSP has fallen down from 2014. One of the
           reasons for the MSP paddy prices much lesser than the wholesale prices may be the
           quality of paddy traded as the scented varieties like Basmati are purchased by the
           traders at a good price in Mandi while low quality paddy are procured at MSP. It is to
           be noted that less than half of the total production is procured under MSP while,
           major portion of the produce is sold in Mandi.

                                       Graph 8: Trend in Wheat production, mandi arrivals and prices in MP

                  200	
                                                                                           2000	
  
                                                                                         177	
       178	
  
                  180	
                                                      171	
                                1800	
     Production	
  in	
  
                                                      1592	
                                                                 lakh	
  tons	
  
                  160	
                                                                                1720	
     1600	
  
                                          1300	
                  1633	
                  1635	
                             Mandi	
  
                  140	
                                                       1513	
                              1400	
     Arrivals	
  in	
  
                                                     131	
                                                                   Lakh	
  tons	
  
                                                                 129	
  
                  120	
                                                                                           1200	
  
                               1279	
                                                                                        Procurement	
  
                                          115	
                                                                              in	
  Lakh	
  
                  100	
                                                                                           1000	
  
                                                                                                                             metric	
  tons	
  
                              76	
  
                    80	
                                                                                          800	
      Wholesale	
  
                                                                                                                             price	
  in	
  	
  Rs/
                    60	
                                                                                          600	
      Qntls	
  

                    40	
                                                                                          400	
      MSP	
  

                    20	
                                                                                          200	
  
                                                                                                                             Wholsale	
  
                      0	
                                                                                         0	
        price	
  in	
  
                                                                                                                             Harvest	
  
                                                                                                                             season	
  

           Data source: Indiastat & NAN, GoMP.

           In case of wheat (Graph-8), the MSP has declined since 2014-15, while the wholesale
           prices have increased and also there is increase in wheat production since 2014-15.
           The whole prices of wheat during the harvest season when most of the small and
           marginal farmers dispose their produce has fallen below even the MSP in 2014-15.
           But the situation has improved in 2015-16 and 2016-17.

           It is also interesting to note that in the total sales in mandi and procured quantity of
           Paddy and Wheat is more than the total production in the state in 2016, indicating the
           possibility of produce from other states being traded in Mandis of MP or clearance of
           old stocks in Mandi. Farmers also stated this issue as one of the reasons for
           overcrowding in Mandis.

           Soybean is the major Kharif crop of the state, grown in about one fourth of the GCA.
           The affected districts are the major soybean-growing belt with more than 45 percent
           of GCA under this crop. The price and production of soybean (Graph-9) is showing a
           declining trend since 2014. The area and productivity of the soybean is also varying
           over the years attributing to erratic rainfall pattern in the state. Soybean is very

           	
  
123
8590/2019/GOV

                       AGRICULTURE	
  DISTRESS	
  AND	
  FARMERS’	
  UNREST	
  IN	
  MADHYA	
  PRADESH:	
  AN	
  EXPLORATORY	
  STUDY	
   19	
  
           	
                                                                                                                                                                                               	
  
           sensitive to drought and temperature changes. In the 2016, the wholesale price during
           the harvest season has fallen to Rs.2813 from Rs. 3569 in 2015 and has further
           dropped in 2017.

                                      Graph 9: Trend in Production, Mandi arrivals and prices of Soybean in MP

                  90.0	
                                                                                                                             4000	
  
                                                                                3506	
                3364	
  
                  80.0	
  
                                                                3402	
                                                3329	
                                         Production	
  
                                                                                                                                                     3500	
  
                                                  3137	
                                             3569	
  
                  70.0	
                                        3412	
  
                                                                                                                                      2757	
         3000	
  
                                                                                                            2813	
  
                                                  3034	
                       2944	
                                                    2775	
                      Mandi	
  arrivals	
  in	
  
                  60.0	
  
                                  2258	
                                                                                              2595	
      2500	
             Lakh	
  tons	
  
                                                                                2560	
               2560	
           2600	
  
                  50.0	
  
                                                                2240	
                                                                               2000	
  
                  40.0	
          2012	
  
                                                                                                                                                                     Wholesale	
  price	
  in	
  	
  
                                                                                                                                                                     Rs/Qntls	
  
                                                  1690	
                                                                             66.5	
          1500	
  
                                                             78.0	
                             63.5	
  
                  30.0	
  
                                  1440	
                                       52.4	
  
                                                62.8	
                                                              49.1	
  
                                                                                                                                                     1000	
          MSP	
  
                  20.0	
  
                                66.7	
  
                  10.0	
                                                                                                                             500	
  

                    0.0	
                                                                                                                            0	
             Wholeslae	
  price	
  in	
  	
  
                                 2011	
          2012	
        2013	
          2014	
            2015	
   2016	
                     2017	
                          harvest	
  season	
  

                    (Data source: Indiastat & NAN, GoMP)

                                           Graph 10: Trend in Channa production, mandi arrivals and prices in MP

                   45.0	
                                                                                                                 7000	
  
                                                                                                           6028	
                                               Production	
  
                   40.0	
                                    38.1	
  
                                                                                                                        35.4	
            6000	
  
                                                                                                         33.6	
  
                   35.0	
                        32.9	
                    33.0	
  
                                                                                          29.6	
                          5414	
          5000	
                Mandi	
  arrivals	
  in	
  
                   30.0	
           26.9	
  
                                                  4214	
  
                                                                                           4032	
                                                               Lakh	
  tons	
  
                                                                                                           4584	
  
                   25.0	
                                                                                                                 4000	
  
                                     3300	
  
                                                              3051	
                                                                                            Wholesale	
  price	
  in	
  	
  
                                                                            2843	
  
                   20.0	
                         3653	
                                                                                                        Rs/Qntls	
  
                                                              3296	
  
                                                                                           3452	
                                         3000	
  
                                                                            3184	
  
                   15.0	
            2770	
  
                                                                                                                                          2000	
                MSP	
  
                   10.0	
  
                                                                                                                                          1000	
  
                      5.0	
                                                                                                                                     Wholeslae	
  price	
  in	
  	
  
                                                                                                                                                                harvest	
  season	
  
                      0.0	
                                                                                                               0	
  
                                    2011	
   2012	
   2013	
   2014	
   2015	
   2016	
   2017	
  

           Data source: Indiastat & NAN, GoMP.

           	
                                                                                                                                                                                      19	
  
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