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LATEST NEWS UPDATES | A right to sell at MSP: CACP wants legislation to ensure farmers benefit -Sanjeeb Mukherjee

A right to sell at MSP: CACP wants legislation to ensure farmers benefit -Sanjeeb Mukherjee

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published Published on Jul 5, 2018   modified Modified on Jul 5, 2018
-Business Standard

The government's price-fixation panel backs legalising farmers' right to sell at MSP

New Delhi:
As the government goes on an overdrive to publicise the hike in Minimum Support Price (MSP), the question is how to ensure that farmers reap the benefits. Unless there is a regular procurement mechanism, MSPs will continue to have a notional value except, perhaps, for rice.

The Commission for Agriculture Costs and Prices (CACP), the body which fixes MSPs for 23 kharif and rabi crops, has suggested a novel way out. The Commission is for bringing a legislation titled ‘Right To Sell at MSP’, which will give legal backing to the exercise, ensure that crops are not purchased below the fixed price and "instill confidence among farmers" . The Commission, however, didn’t spell out the broad contours of the legislation.

CACP recommendations aren’t binding on the government, but in this case the advice may gain some traction. In the upcoming monsoon session, farmers under the banner of the All India Kisan Sangharsh Coordination Committee (AIKSCC) are planning to move a private member's bill that too seeks to give them a legal cushion by guaranteeing an MSP with 50 per cent profit margin over the cost of production.

The Farmers’ Right to Guaranteed Remunerative Minimum Support Prices for Agricultural Commodities Bill, 2018, has been endorsed by representatives of leading political parties.

Ensuring farmers get the benefits of MSPs is a big challenge that the Central and state governments face. At present, wheat and rice have regular procurement mechanisms. Coarse cereals such as ragi, bajra and millets, which have seen a sharp rise in the kharif MSP for 2018-19, don't have any.

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Business Standard, 5 July, 2018, https://www.business-standard.com/article/economy-policy/msps-hiked-but-debate-continues-to-ensure-farmers-don-t-get-a-raw-deal-118070500080_1.html


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