Parliamentary Panel Advocates for Legal Guarantee of MSP

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Parliamentary Panel Advocates for Legal Guarantee of MSP

New Delhi, 17 Dec 2024 | Nirmesh Singh

At the time when farmers have been protesting for MSP guarantee law for over two years now and Modi government averse to such a law, a parliamentary committee on Tuesday recommended several key measures to support farmers, including a legal guarantee for the procurement of crops at the Minimum Support Price (MSP), a new scheme to waive the debts of farmers and farm labourers, and an increase in financial assistance under the PM-Kisan scheme from Rs 6,000 to Rs 12,000 annually.

Although the suggestions are advisory, the report by the Standing Committee on Agriculture, Animal Husbandry, and Food Processing, led by Congress MP Charanjit Singh Channi, highlights issues that have been central to farmers’ demands for the past four years.

The committee proposed expanding the PM-Kisan scheme to include tenant farmers and farm labourers, currently benefiting only landholding farmers. It also called for the creation of a National Commission for Minimum Living Wages for farm labourers to ensure they receive their due rights.

The committee emphasized the importance of MSP in agricultural reform, stating that a robust and legally binding MSP could help reduce farmer suicides by providing financial stability, protecting against market fluctuations, and easing debt burdens. Therefore, it recommended its implementation.

The report also urged the government to increase investment in agriculture to enhance productivity.

It said, “Though the Department of Agriculture and Farmers Welfare saw higher absolute allocations from 2021-22 to 2024-25, its share of the total central plan outlay declined from 3.53% in 2020-21 to 2.54% in 2024-25”.

In addition, the panel suggested exploring the possibility of providing mandatory Universal Crop Insurance for small farmers with up to two hectares of land, similar to the government’s health insurance scheme for all citizens.

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