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LATEST NEWS UPDATES | MSP Will Stop Corporate Encroachment in Agriculture, Ensure Domestic Food Security -Navpreet Kaur and C Saratchand

MSP Will Stop Corporate Encroachment in Agriculture, Ensure Domestic Food Security -Navpreet Kaur and C Saratchand

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published Published on Dec 28, 2021   modified Modified on Dec 29, 2021

-Newsclick.in

A guaranteed MSP system will also reduce public storage costs/wastage if it is complemented by a universal public distribution system.

The year-long protest by farmers and workers compelled the Centre to repeal the three contentious farm laws, which were designed to further corporate encroachment in agriculture, on November 29. On December 11, the protest ended but not before the protesters reiterated their demand for a legal guarantee on Minimum Support Price (MSP).

As of now, the Commission for Agricultural Costs and Prices (CACP) recommends MSPs for 23 commodities. The MSP is announced prior to the sowing of crops by ostensibly taking into account the cost of cultivation from the CACP. However, the MSP is primarily based on the paid-out cost (accounting cost) and imputed wages of family labour rather than the economic cost (which includes accounting cost plus imputed wages of family labour, imputed rent and interest on capital).

The Agricultural Produce Marketing Committee (APMC) markets, which are the sites of procurement of agricultural produce at MSP, were established in the 1960s to try and safeguard farmers against the predatory practices of private procurers. It was envisaged that the markets would also assist farmers in obtaining remunerative prices for their produce. But their geographical coverage is limited.

Further, changes in agricultural policies in a neoliberal regime have resulted in a decline or removal of subsidies for seeds, fertilisers, agricultural machines, etc., which has increased the cost of cultivation. Besides, the large-scale decline in government expenditure on research and development along with agricultural extension services has led to higher use of fertilisers, pesticides and other chemicals to maintain the level of agricultural output on an ecologically unviable trajectory of conventional farming. This too has led to an increase in the cost of cultivation.

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Newsclick.in, 28 December, 2021, https://www.newsclick.in/MSP-Will-Stop-Corporate-Encroachment-Agriculture-Ensure-Domestic-Food-Security?s=09&fbclid=IwAR3O8pVVtvNGpVerSfcO8fpn-9HB2qBe28ArS1uKT4c38XOOuON4kEV5-o4


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