Marginal Hike In MSP For 14 Kharif Crops

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By moderator July 8, 2019 15:27

The Centre has hiked the MSP of 14 crops of the Kharif or summer season, to ensure they remain at a level that is 1.5 times the cost of production.

Details

  • Though the MSP has been hiked for 14 crops to ensure the promised MSP, it is lower than last year’s return.
  • The only commodities with MSP that will ensure a higher than 50% return over input costs are bajra (85%), urad (64%) and tur dal (60%). However, even for these crops, returns are lower than last year.

Challenges

  • The MSP is the rate at which the Centre procures these crops from farmers. However, there is no guaranteed procurement mechanism for most crops.
  • Just over a third of the paddy harvest is bought by the Food Corporation of India for use in the public distribution
  • The farmers have also pointed out that the MSP does not actually help the farmer unless procurement can be increased.
  • Another concern cited was that the crops were being sold for lesser prices in the mandi below the official MSP.
  • The production costs have not been calculated including the land costs, as recommended by the M.S. Swaminathan Commission.

Way forward

  • The government should calculate costs according to the M.S. Swaminathan Commission’s recommendations by including the land costs.
  • The government must guarantee buyback at that rate so that the benefits reach 100% of farmers.
  • The Centre should ensure the implementation of the PM-AASHA scheme announced last year to increase procurement.

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moderator
By moderator July 8, 2019 15:27