Minimum Support price
-Minimum price guarantee for their products/commodities, that provides Security from steep fall in the crop prices and save farmers from losses. And for ensuring food safety in the country.
Recommended by commission on agriculture cost & price (CACP)
Announced by cabinet committee on economic affair (CCEA)
Beginning of every sowing season
Methods To Calculate MSP
A2 Method: Expenditure of various input paid by farmers, pesticides etc.
A2+F2 Method: Expenditure of various inputs + implied cost of family labor
C2 Method: A2+F2 + implied cost of rent of land + all other implied cost
As per current scenario Government of India give 1.5 times of A2+F2 in MSP
Recommended by commission on agriculture cost & price (CACP)
Announced by cabinet committee on economic affair (CCEA)
Beginning of every sowing season
Demands Of Farmers
–Swami Nathon committee 2004 recommended 1.5 times of C2 method of MSP
-Efficient MSP on 23 Crops
-Loan Waiver for Farmers
-Social Security benefits like pension for farmers, Crops insurance
-Statutory backing of MSP
-CACP is not independent & only government representation presents.
Government Stand on MSP Now
On Sunday night, 4th round talks between Union Government and Farmers Leaders brings out, Government comes with a 5-year plan to give MSP on PULSES, MAIZE, COTTON CROPS.
Punjab CM Bhagwant Maan, also attended the meeting between Farmers and Union Government
Cooperative Society like NCCF and Nafed will touch with the farmers who grow Tur dal, Urad dal, Masoor dal or Maize for next 5 years, and there is no limit of buying capacity for these Commodities.
And for Cotton Crops (Cotton Corporation of India) Will buy the commodities from farmers.
After this MSP which only concerned to some limited states like Punjab, Haryana, Uttar Pradesh, Madya Pradesh, Telangana, Chhattisgarh, now its beneficiary will farmers from all over the India and helpful in the raise the income of farmers of India.
And it will also promote the crops other than wheat and rice, and helpful in the ground water safeguard in the areas Punjab and Haryana, because now farmer gets the safeguard from government in the form of MSP to other crops also.
With this Proposal farmers put hold on their “Delhi Chalo” movement, Farmers leaders puts hold for 2 days to discuss about the government proposal with farmers, after that they will release statement about their decision over it.
Why Legislation of MSP Important
No Obligation on Government to pay MSP, because there is no legal backing behind MSP
Government has no obligation to purchase all the commodities.
No Obligation on private sector to purchase commodities at MSP.
Cultivation of water intensive crop will be promoted.
Lacks Safeguard: –
Presently no compensation to farmers when they are forced to sell the commodities below the MSP.
What are Issues involved in the Legalize of MSP
Chances of Poor Price realization
Ecological Issues
Unsustainable food grain management policy
Administration Challenges
Violation of WTO Agreement on Agriculture (AOA)
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