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Resource centre on India's rural distress
 
 

What will a legal guarantee of MSP involve? -Priscilla Jebaraj

-The Hindu

Why are farm unions seeking a minimum support price for all crops? What are the terms of the committee set up to look into their demands?

The story so far: After a year-long agitation on the borders of Delhi, protesting farm unions under the banner of the Samyukt Kisan Morcha have achieved their headline demand, namely the repeal of three contentious laws seeking to reform the storage and marketing of agricultural produce. However, farmers say this is only a half-victory and are pushing for their other major demand for providing a legal guarantee that all farmers will receive remunerative prices for all their crops.

How many crops does the minimum support price cover?

The Central Government sets a minimum support price (MSP) for 23 crops every year, based on a formula of one-and-a-half times production costs. This takes into account both paid-out costs (A2) such as seeds, fertilizers, pesticides, fuel, irrigation, hired workers and leased-in land, as well as the imputed value of unpaid family labour (FL). Farm unions are demanding that a comprehensive cost calculation (C2) must also include capital assets and the rentals and interest forgone on owned land as recommended by the National Commission for Farmers.

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