{"id":33888,"date":"2024-12-18T18:34:43","date_gmt":"2024-12-18T13:04:43","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=33888"},"modified":"2024-12-18T18:34:44","modified_gmt":"2024-12-18T13:04:44","slug":"msp-parliamentary-committee-recommendations","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/18-12-2024\/msp-parliamentary-committee-recommendations","title":{"rendered":"Parliamentary Committee Recommendations on MSP"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Agriculture<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Standing Committee on Agriculture, Animal Husbandry and Food Processing, submitted a comprehensive report to Parliament highlighting the <strong>potential benefits of a legally guaranteed MSP.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Recommendations\u00a0<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>To increase the amount given to farmers under the <strong>PM-KISAN scheme to \u20b912,000 per annum from \u20b96000 given at present.<\/strong>\n<ul class=\"wp-block-list\">\n<li>To extend the incentive to tenant farmers and farm labourers too.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>To declare a roadmap for<strong> implementing MSP as a legal guarantee<\/strong> at the earliest.<\/li>\n\n\n\n<li>Establishing a N<strong>ational Commission for Minimum Living Wages<\/strong> for Farm Labourers.<\/li>\n\n\n\n<li>Introducing a<strong> debt waiver scheme <\/strong>for farmers and farm labourers.<\/li>\n\n\n\n<li>Renaming the agriculture department to include farm labourers.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is the Minimum Support Price?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It is a form of <strong>market intervention<\/strong> by the Government to insure agricultural producers against any sharp fall in farm prices.\u00a0<\/li>\n\n\n\n<li>The prices are announced by the Government at the <strong>beginning of the sowing season for certain crops <\/strong>on the basis of the recommendations of the <strong>Commission for Agricultural Costs and Prices (CACP).\u00a0<\/strong><\/li>\n\n\n\n<li>The major objectives are to <strong>support the farmers<\/strong> from distress sales and to procure food grains for public distribution.\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Crops Covered under MSP<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Kharif Crops (total 14)<\/strong> like paddy, jowar, bajra, maize, ragi, tur\/arhar, moong, urad, groundnut, soyabean, sunflower, sesamum, niger seed, cotton;<\/li>\n\n\n\n<li><strong>Rabi Crops<\/strong> <strong>(total 06)<\/strong> like wheat, barley, gram, masur\/lentil, rapeseed and mustard,and safflower;<\/li>\n\n\n\n<li><strong>Commercial Crops<\/strong><strong>(total 02) <\/strong>like jute and copra.\n<ul class=\"wp-block-list\">\n<li>MSP for Toria and de-husked coconut is also fixed on the basis of MSPs of rapeseed &amp; mustard and copra respectively.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Need for the MSP<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Farmer Welfare:<\/strong> Ensures farmers do not incur losses when market prices fall below production costs.<\/li>\n\n\n\n<li><strong>Agricultural Stability:<\/strong> Provides income stability and encourages continued farming.<\/li>\n\n\n\n<li><strong>Food Security:<\/strong> Ensures adequate production of essential crops, supporting national food security.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Arguments in Favour of Legalising MSP<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Farmer Protection:<\/strong> Legalizing MSP ensures a guaranteed price for farmers, shielding them from volatile market conditions and preventing exploitation by middlemen.<\/li>\n\n\n\n<li><strong>Income Stability:<\/strong> It provides farmers with a stable income, helping them meet production costs and improve their financial security.<\/li>\n\n\n\n<li><strong>Encourages Agricultural Investment:<\/strong> Knowing they have a safety net, farmers are more likely to invest in better farming practices, leading to increased productivity and efficiency.<\/li>\n\n\n\n<li><strong>Food Security:<\/strong> A legally mandated MSP ensures the government can procure essential crops, supporting national food security and preventing shortages.<\/li>\n\n\n\n<li><strong>Poverty Reduction:<\/strong> By ensuring fair prices for their produce, MSP helps reduce rural poverty and improve the overall standard of living for farmers.<\/li>\n\n\n\n<li><strong>Balanced Market Regulation:<\/strong> Legal MSP can reduce market price fluctuations, ensuring fair trade and equitable distribution of agricultural products.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Arguments Against Legalising MSP<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Market Distortions:<\/strong> Legal MSP could lead to market imbalances by encouraging overproduction of certain crops, disrupting supply-demand dynamics.<\/li>\n\n\n\n<li><strong>Fiscal Burden:<\/strong> It would put pressure on government finances, as they may need to buy and store surplus produce, leading to high procurement costs.<\/li>\n\n\n\n<li><strong>Inefficient Resource Allocation: <\/strong>Legal MSP might result in the misallocation of resources, as farmers may focus on MSP-supported crops rather than diversifying or adopting more sustainable practices.<\/li>\n\n\n\n<li><strong>Corruption and Middlemen Exploitation: <\/strong>Legalizing MSP may increase the scope for corruption, with middlemen taking advantage of the procurement system, reducing benefits to actual farmers.<\/li>\n\n\n\n<li><strong>Stifling Agricultural Reforms: <\/strong>It could hinder necessary reforms by making the agricultural market too reliant on government intervention, rather than fostering a competitive and efficient market system.<\/li>\n\n\n\n<li><strong>Encouraging Dependency:<\/strong> Farmers may become overly reliant on MSP, discouraging innovation, market diversification, and adaptation to changing market needs.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The debate around the legality of MSP in India is complex and multifaceted. It involves considerations of economic policy, agricultural sustainability, and social justice.<\/li>\n\n\n\n<li>While the demand for a legal guarantee for MSP is strong among farmers, the government and policy makers need to consider the broader implications of such a move.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/news\/national\/parliament-panel-bats-for-legal-guarantee-of-msp-to-protect-farmers-interests\/article68995568.ece#:~:text=Echoing%20the%20long%2Dstanding%20demand,(MSP)%20for%20agricultural%20crops.\" target=\"_blank\" rel=\"noopener\"><strong>TH<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Standing Committee on Agriculture, Animal Husbandry and Food Processing, submitted a comprehensive report to Parliament highlighting the potential benefits of a legally guaranteed MSP.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-33888","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/33888","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=33888"}],"version-history":[{"count":1,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/33888\/revisions"}],"predecessor-version":[{"id":33889,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/33888\/revisions\/33889"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=33888"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=33888"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=33888"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}