A parliamentary panel on agriculture on Tuesday (December 17) has recommended the implementation of a legally binding minimum support price (MSP) regime, addressing a longstanding demand of farmer unions.
The Standing Committee on Agriculture, Animal Husbandry, and Food Processing, chaired by Congress MP Charanjit Singh Channi, also urged the government to introduce a debt waiver scheme for farmers and agricultural labourers to address rising farm distress and suicides linked to increasing debt burdens.
The committee’s recommendations come against the backdrop of ongoing protests by farmer unions at the Shambhu and Khanauri borders, where they are pressing for a law to guarantee MSP.
The MSP serves as a safety net for farmers, guaranteeing a fixed price for their produce when procured by the government. The Centre currently sets MSPs for 23 agricultural commodities during the kharif and rabi seasons.
However, in practice, government purchases are largely limited to wheat and rice under its food security programs.
While the government routinely announces MSPs, there is no legal mandate to enforce these prices. As a result, farmers often find themselves compelled to sell their produce below the declared MSP in the open market.
Addressing this gap has been a core demand of recent farmers' protests, with stakeholders urging the government to legislate MSP enforcement.
Protesters also insist that MSPs be calculated based on the MS Swaminathan Committee’s recommendations, which suggest a minimum price set at 50% above the cost of production.
Additionally, the parliamentary committee highlighted the need for increased budgetary allocations to the agriculture sector.
It noted a concerning decline in agriculture’s share of the Centre’s total budgetary outlay, which has fallen from 3.53% in 2020-21 to 2.54% in 2024-25.
The Standing Committee on Agriculture, Animal Husbandry, and Food Processing, chaired by Congress MP Charanjit Singh Channi, also urged the government to introduce a debt waiver scheme for farmers and agricultural labourers to address rising farm distress and suicides linked to increasing debt burdens.
The committee’s recommendations come against the backdrop of ongoing protests by farmer unions at the Shambhu and Khanauri borders, where they are pressing for a law to guarantee MSP.
The MSP serves as a safety net for farmers, guaranteeing a fixed price for their produce when procured by the government. The Centre currently sets MSPs for 23 agricultural commodities during the kharif and rabi seasons.
However, in practice, government purchases are largely limited to wheat and rice under its food security programs.
While the government routinely announces MSPs, there is no legal mandate to enforce these prices. As a result, farmers often find themselves compelled to sell their produce below the declared MSP in the open market.
Addressing this gap has been a core demand of recent farmers' protests, with stakeholders urging the government to legislate MSP enforcement.
Protesters also insist that MSPs be calculated based on the MS Swaminathan Committee’s recommendations, which suggest a minimum price set at 50% above the cost of production.
Additionally, the parliamentary committee highlighted the need for increased budgetary allocations to the agriculture sector.
It noted a concerning decline in agriculture’s share of the Centre’s total budgetary outlay, which has fallen from 3.53% in 2020-21 to 2.54% in 2024-25.
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