In recognition of the recent political discussions around farming in India, this article sheds light on significant concepts including Natural Farming, Agricultural Marketing System, Commission for Agricultural Costs and Prices (CACP), and Minimum Support Price (MSP).
Introduction to the Committee Formation and Purpose
The Union Government has recently established a committee under the leadership of the former Union Agricultural secretary. The purpose was to delve deeper into pressing issues concerning MSP and Natural Farming. This move was a response to Prime Minister’s announcement about the government’s decision to revoke the three farm laws.
Farmers in protest have been demanding legal assurance on MSP based on Swaminathan Commission’s ‘C2+50% formula’. According to the Swaminathan Commission Report, the government should increase the MSP by at least 50% more than the weighted average cost of production, popularly referred to as the C2+ 50% formula.
Role of the Committee
In reference to MSP, the committee is expected to discuss strategies for improving the Agricultural Marketing System to align it with the evolving demands of the country and to ensure higher value remuneration for farmers. This is anticipated to be achieved by enhancing domestic output and export.
The committee will also suggest ways to make MSP universally accessible to Indian farmers by ensuring transparency and effectiveness in the system. Moreover, they also aim to provide measures to give more autonomy to the Commission for Agricultural Costs and Prices (CACP) and make it more scientific.
The committee will also focus on Natural Farming. It aims to suggest programs and schemes for value chain development, protocol validation, and research for future needs, along with promoting area expansion under the Indian Natural Farming System.
Understanding Minimum Support Price (MSP)
The concept of Minimum Support Price (MSP) is a government market intervention strategy intended to protect agricultural producers against drastic falls in farm prices. MSPs are declared at the beginning of every sowing season for specific crops based on recommendations from the Commission for Agricultural Costs and Prices (CACP). Presently, MSP covers 23 types of crops.
The prime purpose of MSP is to shield farmers from excessive price drops during high production years. Its major objectives are to protect farmers from distress sales and to procure food grains for public distribution. In cases where market price for a commodity falls below the announced MSP due to bumper production, government agencies purchase the entire quantity offered by the farmers at the announced MSP.
Natural Farming Explained
Natural Farming refers to chemical-free farming, which is firmly set in agroecology. It’s a diversified farming system that combines crops, trees, and livestock, letting the optimum use of functional biodiversity. The method holds numerous advantages including enhancement of farmers’ income, restoration of soil fertility and environmental health, and mitigation/reduction of greenhouse gas emissions.
The UPSC Civil Services Examination Previous Year Question (PYQ)
A question considered from 2020 UPSC Civil Services Examination was: In the case of all cereals, pulses, and oilseeds, is the procurement at MSP unlimited in any State/UT of India? And does the MSP for cereals and pulses stay at a level to which the market price will never rise?
The correct answer was neither 1 nor 2. This is because the overall procurement quantity shouldn’t exceed 25% of the actual production of the commodity for that particular year/season. Also, when market prices dip below the MSP, the government agencies purchase the excess produce to protect the farmers, indicating that market prices can rise over MSP.