Parliamentary Panel bats for legal guarantee of MSP to protect farmers' interests

A parliamentary panel on Tuesday recommended the government implement a legally binding minimum support price (MSP) for agricultural produce, arguing that such a measure could significantly reduce farmer suicides and provide crucial financial stability.

The Standing Committee on Agriculture, Animal Husbandry and Food Processing, headed by Congress MP Charanjit Singh Channi, submitted a comprehensive report to Parliament highlighting the potential benefits of a legally guaranteed MSP.

"The committee strongly recommends that the Department of Agriculture and Farmers Welfare declare a roadmap for implementing MSP as a legal guarantee at the earliest," the report stated.

Currently, the government fixes MSP for 23 commodities based on the Commission for Agricultural Costs and Prices (CACP) recommendations.

The panel argued that a legally binding MSP would not only safeguard farmers' livelihoods but also promote rural economic growth and enhance national food security.

The committee's key recommendations include: implementing a robust MSP system to mitigate farmer suicides, providing compensation to farmers for managing crop residue, establishing a National Commission for Minimum Living Wages for Farm Labourers, introducing a debt waiver scheme for farmers and farm labourers, and renaming the agriculture department to include farm labourers.

The committee emphasized that assured income through MSP would encourage farmers to invest in agricultural practices, potentially increasing productivity and sustainability.

The panel also suggested the government provide a statement in Parliament after each crop season, detailing the number of farmers selling produce at MSP and the gap between MSP and market prices.

It may be noted that a legal guarantee of MSP for agricultural produce was one of the key demands of protesting farmers in 2021 which forced the government to withdraw three farm laws and set up a committee on MSP to look into the matter.