Kisan Sabha flags ethanol blending policy amid farm distress

The All India Kisan Sabha (AIKS) on Sunday criticised the proposed India-US and India-New Zealand free trade agreements (FTAs), alleging they would adversely affect Indian farmers, as its Central Kisan Committee (CKC) discussed a range of agricultural issues, including the minimum support price (MSP) for the 2026 kharif season, rising farm distress, land acquisition and the diversion of Food Corporation of India (FCI) rice for ethanol production.

Addressing the meeting, AIKS president Ashok Dhawale alleged that the Centre's policies were "anti-farmer" and favoured corporate interests.

He described the proposed trade agreements as a "red carpet for imperialism", claiming they would expose Indian farmers to competition from heavily subsidised agricultural producers in developed countries.

Comparing agricultural support in India with that in the United States and the European Union, Dhawale said Indian farmers received significantly lower state support despite operating much smaller landholdings.

According to AIKS, the US federal government is projected to provide $44.3 billion in farm support in 2026 for around 18.65 lakh farmers, amounting to an average subsidy of about Rs 21.56 lakh per farmer. In contrast, India's farm subsidies total around Rs 5 lakh crore for nearly 14.6 crore farmers, translating to roughly Rs 34,000 per farmer.

The organisation also argued that the proposed FTAs could place Indian farmers at a disadvantage by exposing them to competition from wealthier and more heavily subsidised overseas agribusinesses.

Concerns over land, ethanol and farm suicides

Dhawale also accused the government of facilitating land acquisition for corporate projects, citing the proposed Great Nicobar infrastructure project and alleging that more than 1,000 land-related conflicts were currently underway across the country.

He claimed these disputes affected around 1.42 crore people and covered nearly 47.7 lakh hectares of land.

AIKS leaders also expressed concern over increasing farmer suicides.

Committee member Dr Tapti Mukhopadhya said more than one lakh farmers had died by suicide over the past decade, attributing the trend to indebtedness, lack of institutional credit and climate-related challenges.

The meeting also criticised the government's ethanol blending programme, alleging that increasing quantities of FCI rice were being diverted to private distilleries at prices lower than those charged to state governments for food distribution schemes.

According to AIKS, the ceiling for diverting rice for ethanol production was increased from 24 lakh metric tonnes (LMT) to 72 LMT during 2025, while the government's target is to produce more than 1,000 crore litres of ethanol annually.

The farmers' body argued that India's grain surplus was a structural feature and questioned the rationale for diverting foodgrain stocks for ethanol production.

With PTI inputs