BKU Ekta-Ugrahan Sidesteps MSP; Hurdles in Indo-US Agri Trade Talks

Bhartiya Kisan Union (Ekta-Ugrahan) has sidestepped from seeking a hike in the Minimum Support Price (MSP) for all crops. Now, Joginder Singh Ugrahan-led BKU Ekta Ugrahan is seeking reduction in input cost, such as fall in prices of diesel, agro-chemical, pesticides, seeds, and the other key inputs for agriculture. According to Ugrahan, beyond a point, the increase in MSP cannot be sought as it will lead to increase in prices of foodgrain, placing it out of the reach of poor and marginal classes. According to farmer unions other than the BKU (Ekta-Ugrahan), the fall in prices of inputs for agriculture is next to impossible as the union government has no direct control over fuel, agro chemicals and pesticides, because corporations control these inputs. Meanwhile, India's rice stocks in govt warehouses rose 18% from 2024 to a record high. State reserves of rice, including unmilled paddy, totalled a record 59.5M MT on 1 Jun, far exceeding the govt's target of 13.5M MT. Wheat stocks stood at 36.9M MT, well above the govt's target of 27.6M MT. Despite a bumper wheat harvest, India has formally notified the World Trade Organization (WTO) that it will not lift restrictions on wheat exports, citing food security concerns. In a submission to the WTO’s Committee on Agriculture on 11 Jun, India said its temporary ban on wheat exports, first imposed in May 2022, remains in place due to ongoing volatility in global wheat prices and the need to ensure domestic availability. On the other hand, apple, corn, and soybean are emerging as sticking points of competing interests in the trade talks between India and US, possibly delaying a scaled-down version of the proposed Bilateral Trade Agreement (BTA) by 8 Jul, before US President Donald Trump's reciprocal tariffs kick in. A senior Indian official said, 'The US is pushing hard for market access for agricultural products. But India has to protect the interests of a much larger population, it is more of a livelihood issue than a commercial issue for us' (earlier coverage).