India offers support price to pacify protesting farmers

MUMBAI — The Indian government has offered guaranteed support prices for pulses, corn and cotton in a bid to break the deadlock with protesting farmers, Commerce Minister Piyush Goyal said after weeklong clashes between security forces and protesters.

Tear gas and barricades were used to deter the farmers, who form an influential voting bloc, months ahead of a general election due by May, in which Prime Minister Narendra Modi seeks a record third term.

It followed marathon talks with farmers' unions after the protesters, who are demanding higher prices backed by law for nearly two dozen crops, were halted at a distance of about 200 kilometers from New Delhi.

Goyal said the government had proposed five-year contracts for a minimum support price to farmers who diversify their crops to grow pigeon peas, red lentils and corn, paid by cooperative groups it promotes.

"These organizations will buy the produce and there will be no limit on quantity," Goyal told reporters in the northern city of Chandigarh, adding that a similar price guarantee would also be offered to farmers who diversify and produce cotton.

The farmers' unions said they would decide on the proposal within a day or two, after reaching a consensus among themselves.

Switching more crops to pulses from those such as rice and wheat that require more water will not only benefit a depleting water table but also help cut back on imports of pulses.

The world's biggest importer of pulses, India has struggled to hold back increases in the prices of pigeon peas and crops, Reuters reported.

The demand for domestic corn has also been rising as the poultry and ethanol industries boost consumption.

Police have used tear gas and barricades to stop thousands of farmers, who mainly grow wheat and rice, from marching to New Delhi, to press their demand that the government ensure a minimum price for all their produce.

Pressing for demands

Scores of farmers with large convoys of tractors embarked on the Delhi march on Tuesday to press for their demands, including a minimum support price for crops. The farmers were stopped near the Haryana border and teargassed.

Last week, protesting farmers held talks with three federal government ministers over the issue.

In September 2020, the Indian government passed three contentious laws aimed at "modernizing "the country's agriculture sector.

However, farmers feared the new laws would weaken their position and make them dependent on corporates. Seeking revocation of the laws, thousands of farmers sat on strike at the borders of the national capital.

The strike went on for over a year after which Modi, in a surprise address to the nation, announced his government was repealing the laws.

Agencies - Xinhua