SWAMINATHAN COMMISSION (Syllabus GS Paper 3 – Economy)

Context: The president of the ruling party criticized the former former government for ignoring the MS Swaminathan Commission's recommendations and now demanding a Minimum Support Price (MSP) based on those same suggestions.

Swaminathan Commission

• About: The late MS Swaminathan, a renowned agriculturist recently honored with the Bharat Ratna, chaired the National Commission on Farmers.
• Reports Submission: The National Commission on Farmers (NCF) submitted five reports between December 2004 and 2006.
• Government Approval: Based on the draft National Policy for Farmers (NPF), the government approved the National Policy for Farmers in 2007.
• Objective of the Policy: The policy aimed to enhance the economic viability of farming and increase farmers' net income.
• Key Policy Elements: The policy included asset reforms related to natural resources, supply of quality seeds, timely institutional credit, comprehensive social security coverage, and effective implementation of Minimum Support Prices (MSP).

Key Recommendations of the Swaminathan Committee

• Minimum Support Price (MSP) Formula: The NCF recommended that MSP should be at least 50% more than the weighted average cost of production, known as the C2+50% formula, to ensure farmers receive adequate returns.

o The former government did not incorporate the C2+50% MSP recommendation into the National Policy for Farmers finalized in 2007.

• Addressing Agrarian Crisis: The panel identified issues like incomplete land reforms, water quantity and quality, tech fatigue, and adverse meteorological factors as causes of farmers' suicides. 

o It recommended adding 'agriculture' to the Concurrent List of the Constitution.

• Land Reform and Regulation: The commission suggested prohibiting the diversion of prime agricultural land and forests to corporate sectors for non-agricultural purposes and proposed a regulatory mechanism for agricultural land sales.
• Improving Credit Availability: The commission recommended reducing crop loan rates to 4% simple interest with government support and issuing Kisan Credit Cards to female farmers to improve credit availability.
• Rural Insurance Development: The NCF proposed establishing a Rural Insurance Development Fund to support the expansion of rural insurance coverage and development efforts.