While the tough stand of protesting farmer’s demanding repeal of Three Farm Laws enacted by the Central government is proving a big hurdle in resolving the issue; their demand making the MSP (minimum support price) for farm produce legal is also a contentious issue.

Despite the government’s commitment to continue the MSP for food grains after implementation of the laws the farmers are  sticking to make it legal to ensure  minimum support price for the farm produce.

Why the government is not committing to make the MSP legal is “because this could make the whole exercise of reforms in the farm sector difficult to implement,” feel experts.

The farm laws have been framed on the recommendation of a committee headed by former Chief Minister of Himachal and former Union Minister Shanta Kumar.

This committee in its observation had said, “The MSP was started in India in 1960’ to stabilize food prices when the country was a food deficit nation but only 6 percent big farmers take their produce to mandis; at present there is a need to develop entrepreneurs through free trade in open market.”

However , people opposing entry of corporate houses in the farm produce opines,  “ The MSP is very important as suggested by Swaminathan Commission constituted in 2006 for agriculture reforms and save farmers from distress sale of their produce .”

They argue, “If you go into background of mass suicides of farmers in India, besides crop failure for various reasons distress sale of farm produce is main cause of farmers suicides.”  

The announcement of MSP for any produce is a signal and assurance to farmer that in all probability the price of his produce would not go down than the MSP.

They say,  “Basically there is a move to allow  big corporate houses in the food grain trade and the Farms Acts are part of this move but the MSP of farm produce is big hurdle in their way and it is going to end slowly ; which is why the government it shirking from making it legal .”

Interestingly, a committee of Chief Ministers of which Narender Modi then CM of Gujrat was a member, had also recommended to make the MSP legal in 2011.

Dr Onkar Shad, state secretary of Himachal Kissan Sabha says, “The MSP for farm produce is going to die automatically with the implementation of the Farm Acts as without government purchase of food grain and storage by FCI the AMPC mandis would become redundant making the MSP redundant affecting the PDS system.”

He says, “That’s why the farmers are demanding enactment of another law making   the MSP legal; the Punjab government has already passed a bill in this regard and the Kerala government has announced MSP for 16 vegetables.”

“Low price in the market for the farm produce is one of the main reasons of crisis in agriculture and even in state like Himachal the corporate houses would exploit the apple and vegetable growers in the absence of the MSP,” he adds.

Attacking former Chief Minister Shanta Kumar, who headed the committee making recommendations for allowing free trade in farm produce CPM state committee said, “He is known for taking anti-people stand as he imposed no- work –no pay against the agitating state government employees.”

Food and agriculture expert Devinder Sharma argues, “If minimum sale price is assured through MRP for an industrial product then why should the MSP not be given for the farm produce”?

Former Director of National Institute of Agriculture Marketing Dr Madhusudan Jairath says, “The MSP is a signal to farmers to grow a particular crops but it also hampers their entrepreneurship as they grow grains for government purchase.” 

“While there is need of crop diversification, maintaining quality and developing open marketing but government agencies will have to do micro-planning at village level to maintain demand and supply for every crop through gram sewaks, who should in fact act as village land ambassadors helping farmers from sowing to marketing of crop; even advance county like England is having farm advisors to assist farmers”, he adds. 

Sharing is caring!