MSP Ain’t Broke, Don’t Fix It
Context: Instead of breaking down the framework of Minimum Support Price (MSP) and Agriculture Produce Marketing Committees (APMC), it must be further strengthened.
A brief on India’s journey towards self-sufficiency
- Ship to mouth existence (the 1960s). Ten million tonnes of wheat had to be imported from the United States (through ships) under the PL480 programme.
- Green Revolution (Post 1963): Norman Borlaug provided (to M.S. Swaminathan) seeds of some of his high-yielding dwarf wheat varieties/populations ushering in the “Green Revolution.”
- Attainment of self-sufficiency (1974): by industrious farmers of Punjab, Haryana and Western UP.
Problems with new farm laws
- Reactive approach in enactment: due to lack of consultation with the farmers and Urgency in passing the bills during the monsoon session of Parliament.
- Double whammy for farmers: Loss of income during the lockdown and after the enactment of laws.
- No guarantee of Minimum Support Price (MSP) and threat due to discontinuation of APMCs (Agriculture Produce Marketing Committees):
- Fear of emergence of a new class of middle man: and lawyers belonging to big companies.
- Fear against contract farming: Big companies might become monopolies and exploit both farmers and consumers.
Way forward
- Continue MSP: Determine it on the basis of grain quality and increase its coverage to other crops as well to promote diversification. Arguments favouring continuation -
- MSP helped farmers for better price realisation.
- Recommended by The National Farmers’ Commission: which suggests an MSP of 50 % over and above a farmer’s input expenses.
- Determine MSP on the basis of grain quality.
- Continue APMCs: because the fees that “Mandi Boards” collect (for example the Rural Development Fund) have helped build link roads.
- Significance of APMC procurement: Wheat varieties grown in the “food bowl” states contain 11% protein compared to 7% protein grown elsewhere.
- Promote crop diversification: By purchasing crops produced other than wheat and rice at MSP.
- Set up adequate cold-chain infrastructure: To encourage farmers to grow high-value crops, such as vegetables and fruits.
- Consult farmers in policymaking: E.g. By including some progressive farmers in the NITI Aayog. A proactive approach is always better than a reactive one!
- Consult Agricultural Think Tank in policymaking: including World Food Laureates like M S Swaminathan, Gurdev S Khush, Surinder K Vasal, and Rattan Lal.
Related Articles
