Evolution Of MSP As Tool To Support Distressed Apple Growers In Himachal Pradesh

The minimum support price (MSP) has a long and chequered history in Himachal Pradesh. In 1981, apple growers suffered huge losses due to severe hail storms. The damage was so intense that some of the farmers were left without any marketable fruit. To mitigate the suffering of the farmers, the then Chief Minister Thakur Ram Lal intervened and offered to buy the culled apples at  50 paise per kg. This was a historic beginning of government intervention to help the farmers. 

In 1983, the apple industry in Himachal Pradesh again suffered a huge setback. This time, the culprit was not hailstorms but the dreaded fungal disease called Scab. Despite best efforts by farmers, the apple crop could not be saved. The government of the day which was headed by Virbhadra Singh formed a Support Price Board headed by the Agriculture Production Commissioner and representatives of farmers so that the system of MSP could be established in a scientific manner. The Agro Economic Research Center at Himachal Pradesh University was asked to work out the cost of production of various agricultural commodities. The support price was not only introduced for apples but other commercial crops and produce like galgal, kinnow, orange, guava, ginger, seed potatoes, honey, and chilgoza were also brought under the ambit of MSP.

In 1989, the Virbhadra government increased the MSP for apple to Rs 2.75. By this time, MSP had become an integral part of the farm economy and anybody tempering with it was bound to burn his fingers. Veteran BJP leader and former CM Shanta Kumar, who at that time was Leader of the Opposition and was to become CM after few months, mocked the low MSP offered by the Congress government. During an election rally held at Thanedar in Shimla in March 1990,  he promised to increase the MSP of apples from Rs 2.75 to Rs 5 per kg. 

Unfortunately, Kumar did not keep up his election promise. Citing poor economy, he reduced the MSP of apples from Rs 2.75 to Rs 1.30. The slashing of MSP in a year when most of the apples were damaged by hail storms did not go well with the apple growers. 

Several meetings were held between the farmers and the government throughout the summer of 1990 but Kumar, who was known for his own style of politics and decision-making, did not budge. When all talks failed, apple growers started holding peaceful demonstrations against the government to press for their demands. The government tried to effectively deal with the farmers  agitation. For the first time in the history of Himachal, paramilitary forces like Border Security Force (BSF) and Central Reserve Police Force (CRPF) were brought in to curb the mass agitation. Three young farmers died in a police firing  at Kotgarh on July 22, 1990. 

The death of these three farmers triggered widespread anger and resentment against  Kumar. The Kotgarh firing snowballed into a crescendo of vocal outbursts against the BJP government in 1993 election held after Shanta Kumar government was dismissed in the wake of Babri Masjid demolition. Later, Kumar shifted to national politics and Prem Kumar Dhumal emerged on the state horizon as the face of BJP.

The farmers of Himachal are grateful to current CM Sukhvinder Singh Sukku for understanding the plight of the farmers who are reeling under debt and suffering caused due by diminishing farm returns. In a short period of few months, he has tried to address the long-pending demands of the farmers. 

Accepting the demand of buying apples by weight, to charge freight by road distance and to implement the APMC Act in letter and spirit have been welcomed by the apple growers. 

The year has been cruel to farmers. Due to global warming and climate change, Himachal had to experience dry winters. Lack of snow and chilling have resulted in all-time low produce. To  aggravate the situation further, we are having continuous rains since March. These unwanted rains during summers, which is the the fruit development season, have curbed the size and the quality of apples. Due to continuous rains, fungal infection has infested most of the apple orchards in the state. Apple trees have started shedding leaves.  

The widespread premature leaf-fall which results in poor colouring and fruit size has come at a time when there was hardly any crop on the trees. Because of this double whammy, farmers would have been forced to sell their produce in open markets at throwaway prices had the state government not intervened. The historic MSP of Rs 12 announced by Sukku government on  August 15 came at a time when it was most needed. This is for the first time in the long history of apple-growing that MSP has been increased at such an exponent  rate. Generally, the practice was to enhance it by 50 paise a year.

The apple growers of Himachal realise the fact that this unprecedented increase in support price was given to them at a time when the state is reeling under economic crisis and the state is every day being battered by deaths caused by floods and land slides.

(Prakash Thakur is a former Vice Chairman of Himachal Pradesh Horticultural Produce Marketing & Processing Corporation and former Director of Agricultural and Processed Food Products Export Development Authority. Views expressed are personal.