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As the Samyukta Kisan Morcha - a federation of about 500 farmer organisations - intensifies its agitation against three farm laws, a source said that the Government is likely to take up discussions on passing a law related to Minimum Support Price (MSP).
One of the key figures in the discussions between the farmers and the Government said that the Government is not willing to withdraw the farm laws but could think of passing a law on MSP to pacify farmers.
“The Centre has already hinted at making amendments in the law. Farmers fear that the new laws will dismantle the system of procurement under MSP and leave them helpless as well as dependent on corporations. There is a need to allay this fear. The Government can ensure farmers about the MSP and at the same time can continue with the farm laws” the source told BusinessLine .
Samyukt Kisan Morcha has put forth a law for MSP along with the demand to repeal the three laws. The farmers are demanding for a law on the MSP with the provision of procurement at a price lower than MSP as an offence.
However, a section of experts supporting the farm laws have warned that making MSP obligatory would add the problems of farmers as the MSP ignores demand and supply logic in the market.
Minister of Agriculture Narendra Singh Tomar told the Rajya Sabha in September last year that the Union Budget for 2018-19 had announced the pre-determined principle to keep the MSP at levels of one and half times the cost of production. Accordingly, the Government has increased the MSPs for all mandated kharif, rabi and other commercial crops with a return of at least 50 per cent overall India weighted average cost of production since the agricultural year 2018-19.
The Government provides fair prices to farmers through procurement of crops of Fair Average Quality (FAQ) at the MSP.
Farmers’ organisations that have supported the laws are not averse of the demand on MSP by agitating farmers. Shetkari Sanghatana, the farmers’ body in Maharashtra has insisted that the government must take all steps to ensure that the MSP system is not disrupted because of new laws.
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