Centre Could Consider Passing Laws on MSP; Says Sources

As the Samyukt Kisan Morcha escalates its protest against the recent farm laws, a source commented that the Government is probably going to take up conversations on passing a law associated with Minimum Support Price (MSP). Around 500 farmer associations formed “Samyukta Kisan Morcha”.

One of the vital outcomes of the conversations between the farmer associations and the Government is that the centre isn't prepared to pull out the farm laws however could consider passing a law on MSP to placate farmers.

"The Centre as of now has hinted of making corrections to the recently passed farm laws. Farmers panic that the new laws will destroy the current procurement arrangements under the MSP system and leave them defenseless just as reliant on corporates. There is a need to alleviate this fear. The Government can guarantee farmers regarding the MSP system and simultaneously can proceed with the new laws" the source told.

Samyukt Kisan Morcha has brought forward a law with regards to MSP alongside its appeal for the annulment of the three new laws. The associations are requesting for a law on the MSP with the arrangement of procurement at a value lesser than MSP as a crime.

Yet, a fraction of the experts are in support of the new farm laws. They have cautioned that making MSP mandatory would add to the issues faced by the farmers as the MSP overlooks demand and supply rationale of the market.

Narendra Singh Tomar, MOS Agri,confirmed that in the month of September last year, Rajya Sabha had decided that the Union Budget for 2018-19 had declared the pre-decided rule to keep the MSP at levels of one and half times the cost of production. Subsequently, the Government has expanded the MSPs for all kharif, rabi and other business crops that are mandated with a return of somewhat 50%. The centre gives reasonable prices to farmers through acquisitionof harvests of Fair Average Quality (FAQ) at the MSP.

Farmers’ associations that have backed the laws are not hesitant of the demand on MSP by protesting farmers. The farmers’ body of Maharashtra, Shetkari Sanghatana has demanded that the centre should find a way to guarantee that the MSP framework isn't disturbed in view of new laws.