NEW DELHI: At a time when farmers have been protesting for remunerative prices, the parliamentary committee on agriculture has backed a legal guarantee for the minimum support price (MSP).
Chaired by Congress MP and former Punjab Chief Minister Charanjit Singh Channi, the committee said implementing a legally binding MSP was essential not only for safeguarding the livelihood of farmers but also for promoting rural economic growth and enhancing national food security.
“We are of the considered opinion that the MSP implementation remains a focal point in the dialogue surrounding agricultural reforms and farmers’ welfare. The benefits and advantages of implementation of the MSP as legal guarantee far outweigh its challenges. This would stimulate economic activity in these areas, benefiting local businesses and economies,” the panel said.
It said with assured income through the MSP, farmers were more likely to invest in their agricultural practices, leading to increased productivity and sustainability in farming and this investment could also contribute to long-term food security for the nation.
“By ensuring that farmers receive fair prices, the MSP can help stabilise food production levels. Consistent income allows farmers to plan better and maintain production without the fear of market fluctuations undermining their efforts. The committee strongly recommended that the department needs to declare a roadmap for implementing MSP as a legal guarantee at the earliest. This will also allow the Centre to plan its finances accordingly and subsequently, allow a smooth transition,” said the committee. It asked the Department of Agriculture to table a statement in Parliament after every crop season, giving details of the number of farmers who sold their produce at MSP and the existing gap between MSP and actualised market prices of crops.
“The MSP mechanism aligns with broader National Food Security Act objectives by ensuring that foodgrains are available at stable prices, thus aiding the public distribution system. Addressing the associated challenges of MSP through thoughtful policy design will be crucial for its successful implementation and would prove to be a game changer. The committee recommend implementing a robust and legally binding MSP system that can play a crucial role in reducing farmer suicides by providing financial stability,” said the committee.
The panel also urged the government to compensate the farmers for managing and disposing of stubble to prevent them from burning it. Batting for higher budget for agriculture, the committee cited the NABARD Survey on Rural Financial Inclusion for 2022-23, which shows that while average monthly income of households saw a substantial rise of 57.6 per cent over a five-year period (Rs 8,059 in 2016-17 to Rs 12,698 in 2021-22), average monthly expenditure surged even more sharply from Rs 6,646 to Rs 11,262 over the same period.