Assurance on MSP should satisfy farmers: Experts on government’s proposed amendments to agri laws

Agriculture economist Devinder Sharma said it was quite a climbdown.
Farmers during their ongoing agitation against the new farm laws at Delhi-UP border near Ghazipur in New Delhi Wednesday Dec. 9 2020. (Photo | Parveen Negi/EPS)
Farmers during their ongoing agitation against the new farm laws at Delhi-UP border near Ghazipur in New Delhi Wednesday Dec. 9 2020. (Photo | Parveen Negi/EPS)

NEW DELHI: Even as the government’s proposed amendments to the agri laws along with an assurance on MSP, submitted in writing, failed to satisfy the protesting farmer unions, experts said the government had tried to accommodate some of the key demands made by them.

Agriculture economist Devinder Sharma said it was quite a climbdown.

“The government has tried to accommodate some of the important demands of farmers like subsidy on electricity bills and other things. But, a loud noise from this farmers’ movement was actually for an assured income. Over the years, the farmers have suffered losses. Therefore, they demanded legalising the MSP across the 23 crops for which the MSP is announced every year. This has still not been fulfilled. I am sure the farmers basically would be more concerned about this.”

Referring to Shanta Kumar Committee report, Sharma said, “According to the committee, only 6% farmers in the country benefit from MSP regime. The government has given an assurance on MSP, but it’s only for the 6%. What about remaining 94% farmers? How will they get price assurance? That is the bigger question.” 

The main objective of the reforms was higher income. If the government is ready to assure higher income, then what is the issue in legalising the MSP? Sharma added. Former agriculture secretary S K Patnaik said, “All the amendments (proposed) are good, but what they want is written assurance on MSP. The government has been procuring foodgrains for PDS distribution at MSP and it will be done in future as well. Fruit, vegetables and other horticulture crops are sold outside the mandis... I think the farmers should be satisfied.”

Explaining further, Patnaik said, “Government procurement at MSP for PDS is good and it should continue. But, if we start applying MSP system on everything, then prices will not be competitive and may hamper exports.” 

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