Polls taking a U-turn?Way back in 2007, ‘Kisan sympathizer’ Cong snubbed Swaminathan Commission’s MSP formula

Congress now promises MSP farmers if it comes to power in 2024 The UPA government had rejected the MS Swaminathan Committee’s MSP package in 2007, saying it would “distort the market” and “counterattack”. Productive”.

The National Council of Farmers (NCF), headed by Dr Swaminathan, has recommended that the minimum support price (MSP) should be at least 50 per cent higher than the weighted average cost of production.

However, when the then UPA government finalized the National Farmers Policy in 2007, this recommendation was not included. The proposal remains a demand of the protesting farmers, who now also want a law to guarantee MSP.

“The National Farmers Commission chaired by Professor MS Swaminathan recommended that the minimum support price (MSP) should be at least 50 per cent higher than the weighted average cost of production. However, this suggestion was not accepted by the government as the MSP is determined by agricultural costs and prices Commission (CACP) on the basis of objective criteria and taking into account various relevant factors. Therefore, stipulating a cost increase of at least 50% may distort the market. In some cases, the mechanical link between MSP and production costs may be counter-productive,” at the time KV Thomas, Minister of State for Agriculture, told Parliament in a written reply in 2010.

“Since then, prices have increased and the condition of farmers has worsened under this government. We need to implement this report now,” Congress leader and spokesperson Randeep Surjewala was asked and UPA’s earlier decision.

Modi government’s position

The Union Budget 2018-19 under NDA announced the predetermined principle of maintaining MSP at a level of one and a half times the production cost.

Therefore, the government has increased the minimum support scheme for all mandatory cultivation of kharif, rabbi and other cash crops to achieve a return of at least 50 per cent of the production cost for the agricultural year 2018-19. “This decision by the government is historic as it fulfills its promise to farmers to provide returns of more than 50 per cent of the all-India weighted average cost of production for all mandatory crops for the first time,” the government informed Parliament recently.

Acting on the recommendations of the Commission on Agriculture Costs and Prices (CACP), the Modi government has increased the minimum support price (MSP) of all notified Kharif and Rabi crops and other cash crops for the 2018-19 season with a return of at least 50 percent over the cost of production. . “This decision by the government is historic as it fulfills the commitment announced in the Union Budget 2018-19 to fix MSP at a level of at least 50 per cent return on production costs,” a senior government official said. News 18.

In recommending the MSP, the CACP takes into account the cost of production and a number of factors such as supply and demand conditions, domestic and international price trends, inter-crop price parity, terms of trade between the agricultural and non-agricultural sectors and the impact that the MSP may have on the rational use of land and water. and other scarce natural resources, impacting consumers and the overall economy.

The costs considered are comprehensive and include all costs paid such as cost incurred for hiring manpower, bullock labor/machine labor, rent paid for leasing land, cash incurred for use of material inputs like seeds, fertilizers and Estimates of physical expenses, fertilizers, irrigation charges, depreciation of farm implements and farm buildings, interest on working capital, diesel/electricity etc. for pump set operation, miscellaneous expenses and household labor.