The market for cash crops faced a crisis in the 1980s due to the liberalisation of the Indian economy. It is to be known that green revolution contributed a lot to the economic development of the people of Haryana, Punjab, Western states from the late 1960 s onwards sugarcane and wheat became the main cash crops in these areas in the years following this revolution.
Taking the issue of non-receipt of prices despite liberalization and higher production of cash crops, the Bhartiya Kisan Union made several major demands from the government. These demands included government increase in purchasing price, removal of restrictions on inter-state movement of agricultural products, guaranteed supply of electricity at reasonable rates, waiver of farmers arrears and provision of pension scheme for farmers, etc. were prominent.
In order to get their demands from the government, the Bharatiya Kisan Union took the help of rally, dharna, demonstration and Jail Bharo Andolan etc. Farmers threatened consequences if demands were not met by the government.