| Introduction: Contextual Introduction Body: Recommendations of commission and relevance on farming in India Conclusion: Way forward |
The recent farmers’ protest has once again raised demand for a law to guarantee the procurement of all crops for all farmers at MSP and the determination of crop prices as per the recommendations of the Dr. Swaminathan Commission. The Swaminathan Commission, officially known as the National Commission on Farmers (NCF), was established in 2004 to address the issues faced by Indian farmers and to recommend policies for their welfare.
Key Recommendations of the Commission
- MSP at C2 + 50%: The Commission recommended that MSP should be set at a level that ensures a minimum of 50% return over the comprehensive cost of production (C2), which includes actual paid-out costs, imputed family labour costs, and the imputed rent and interest on owned land and capital. This recommendation was aimed at providing farmers with remunerative prices that cover not just their production costs but also provide a reasonable profit margin.
- Participation of Women in Agriculture: Commission underscored the need to ensure the need to ensure that working women have the needed support services and have access to timely credit and extension services. It called for the setting up of a National Board for New Deal for Women in Agriculture under the Union Food and Agriculture Minister, with the Union Ministers for Women and Child Development, Rural Development, and Panchayati Raj as co-chairs.
- Agriculture infrastructure: The report also suggested that Farm Schools should be established in the fields of innovative farmers, to spread their message and methods. The report suggested establishing a grain bank and community food and fodder banks, promoting insurance, and setting up a national network of advanced soil testing labs.
Relevance on the economic viability of farming
- Revision of MSP Regularly: The Commission suggested that MSP should be revised periodically, ideally every year, to account for changes in input costs, inflation, and market conditions. Regular revision of MSP ensures that farmers receive fair and remunerative prices for their produce, thereby maintaining the economic viability of farming.
- Diversification of Crops Covered Under MSP: The Commission recommended expanding the coverage of crops under MSP to include a wider variety of crops beyond wheat and rice. This would encourage crop diversification, reduce the risk of price volatility, and promote sustainable agricultural practices.
- Market Intervention: The Commission suggested the establishment of a price stabilization fund to intervene in the market during price crashes and to provide support to farmers when prices fall below MSP. This mechanism would help mitigate the risks associated with price volatility and ensure stable incomes for farmers.
Conclusion
The Swaminathan Commission’s MSP recommendations hold promise for improving farmers’ income and agricultural sustainability.
