Parliamentary Panel bats for legal guarantee of MSP to agricultural produce, waiver of loan

New Delhi: Suggesting the government implement a legally binding minimum support price (MSP) for agricultural produce, a parliamentary panel on Tuesday also favoured waiving of farm loan.

The Standing Committee on Agriculture, Animal Husbandry and Food Processing, headed by Congress MP Charanjit Singh Channi, said that implementing a legally binding MSP in India is essential not only for safeguarding farmers' livelihoods but also for promoting rural economic growth and enhancing national food security.

Advantages of implementation of MSP as legal guarantee far outweigh its challenges. This would stimulate economic activity in these areas, benefiting local businesses and economies.

Assured income through MSP would encourage farmers to invest in agricultural practices, potentially increasing productivity and sustainability, the panel in its report tabled in Parliament said.

Currently, the government fixes MSP for 23 commodities based on the Commission for Agricultural Costs and Prices (CACP) recommendations. It may be noted that a legal guarantee of MSP for agricultural produce was one of the key demands of protesting farmers in 2021 that forced the government to withdraw three farm laws and set up a committee on MSP to look into the matter.

Several farmers associations from Punjab and Haryana have been protesting at Haryana and Punjab border demanding several issues including legally binding MSP.

Nothing that rising farmers debt and suicides due to distress in agriculture sector, the panel recommended the introduction of a scheme to waive off debt of farmers and farm labourers.

Other 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, and renaming the agriculture department to include farm labourers.

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.