Check your facts on MSP and Inflation - 28/08/2007
Ref.No: QRLD/2007-08:
S. Prakash Singh Badal Ji,
Hon. Chief Minister Punjab
CM Punjab Residence
House 45 Sector 2,
Chandigarh
17 September 2007
Dear Badal Sahib,
Check your facts on MSP and Inflation
Noting your comments that MSP should increase in line with inflation, although I am not sure if you mean the wholesale price index (WPI) or the consumer price index (WPI).
I would respectfully request you to check your figures.
As per annexure over the last ten years MSP for both rice and wheat has risen above the rate of inflation. Rice MSP has exceeded the WPI by 9.28% and wheat MPS (inclusive of bonus) by 13.05%.
Alarmingly during your last government, wheat MSP trailed the WPI by 5.24% and rice MSP trailed the WPI by 1.55%.
In marked contrast the Captain Amarinder Singh government protected the farmers interests much better with rice MSP exceeding the WPI by 4.24% and wheat MSP exceeding the WPI by 12.36%.
You should not be asking for MSP to be fixed in line with inflation. You should be asking for farmer’s income to increase in real terms. Only then will farmers be able to reduce their indebtedness.
The correct and just demand at this juncture should be that annual MSP increments should exceed the consumer price index (CPI) by at least 5% per annum.
When it comes to protecting the interest of Punjab farmers, rest assured that the Congress party will support any and every feasible plan that promotes farmers income. But let’s stick to fact, not fiction, first.
Kind regards,
Yours sincerely
Jassi Khangura MLA
HALQA QILA RAIPUR
| WHEAT RICE MSP TRENDS DURING AKALI-BJP GOVT 1997-2002 | ||||
| MSP Grade A | Central Bonus (Rs./Qntl) | Total MSP Grade A |
Wholesale price Index |
|
| RICE | ||||
| 1997-98 | 455 | 455 | 134 | |
| 1998-99 | 470 | 470 | 146 | |
| 1999-00 | 520 | 520 | 171 | |
| 2000-01 | 540 | 540 | 168 | |
| 2001-02 | 560 | 560 | 167 | |
| % increase | 23.08 | 23.08 | 24.63 | |
| WHEAT | ||||
| 1997-98 | 510 | 510 | 138 | |
| 1998-99 | 550 | 550 | 152 | |
| 1999-00 | 580 | 580 | 175 | |
| 2000-01 | 610 | 610 | 177 | |
| 2001-02 | 620 | 620 | 175 | |
| % increase | 21.57 | 21.57 | 26.81 | |
| RICE MSP TRENDS DURING 1997-2007 | ||||
| RICE | MSP Grade A | Central Bonus (Rs./Qntl) | Total MSP Grade A |
Wholesale price Index |
| 1997-98 | 455 | 455 | 134 | |
| 1998-99 | 470 | 470 | 146 | |
| 1999-00 | 520 | 520 | 171 | |
| 2000-01 | 540 | 540 | 168 | |
| 2001-02 | 560 | 560 | 167 | |
| 2002-03 | 560 | 20 | 580 | 166 |
| 2003-04 | 580 | 580 | 169 | |
| 2004-05 | 590 | 590 | 168 | |
| 2005-06 | 600 | 600 | 175 | |
| 2006-07 | 610 | 40 | 650 | 179 |
| Total Increase (%) | 34.07 | 42.86 | 33.58 | |
| WHEAT RICE MSP TRENDS DURING CONGRESS GOVT 2002-2007 | ||||
| MSP Grade A | Central Bonus (Rs./Qntl) | Total MSP Grade A | Wholesale price Index | |
| RICE | ||||
| 2002-03 | 560 | 20 | 580 | 166 |
| 2003-04 | 580 | 580 | 169 | |
| 2004-05 | 590 | 590 | 168 | |
| 2005-06 | 600 | 600 | 175 | |
| 2006-2007 | 610 | 40 | 650 | 179 |
| % increase | 8.93 | 12.07 | 7.83 | |
| WHEAT | ||||
| 2002-03 | 630 | 10 | 640 | 176 |
| 2003-04 | 630 | 630 | 181 | |
| 2004-05 | 640 | 640 | 184 | |
| 2005-06 | 650 | 650 | 191 | |
| 2006-2007 | 750 | 100 | 850 | 212 |
| % increase | 19.05 | 32.81 |
20.45 |
|
| WHEAT MSP TRENDS DURING 1997-2007 | ||||
| Wheat | MSP | Central Bonus (Rs./Quintal) | Total MSP | Wholesale price Index |
| 1997-98 | 510 | 510 | 138 | |
| 1998-99 | 550 | 550 | 152 | |
| 1999-00 | 580 | 580 | 175 | |
| 2000-01 | 610 | 610 | 177 | |
| 2001-02 | 620 | 620 | 175 | |
| 2002-03 | 630 | 10 | 640 | 176 |
| 2003-04 | 630 | 630 | 181 | |
| 2004-05 | 640 | 640 | 184 | |
| 2005-06 | 650 | 650 | 191 | |
| 2006-2007 | 750 | 100 | 850 | 212 |
| Total Increase (%) | 47.06 | 66.67 | 53.62 | |
