New Delhi/Chandigarh October 16, 2024: The central government has announced major increases in the minimum support prices (MSP) for several agricultural crops, providing a substantial boost to farmers.
In a notification released on Wednesday, the government raised the MSP for wheat from Rs 2,275 to Rs 2,425 per quintal.
Moreover, the MSP for barley has been increased from Rs 1,850 to Rs 1,980 per quintal.
The announcement also includes a rise in the MSP for gram, which has been adjusted from Rs 5,440 to Rs 5,650 per quintal.
The price for pulses has increased from Rs 6,425 to Rs 6,700 per quintal, while the MSP for mustard has gone up from Rs 5,650 to Rs 5,950 per quintal.
It is pertinent to mention that farmers have been protesting from years, demanding law to guarantee the Minimum Support Price (MSP) for all crops and to determine crop prices according to the recommendations of the Dr. M. S. Swaminathan Commission’s report.
The Swaminathan Commission Report states that the government should raise the MSP to at least 50% more than the weighted average cost of production, known as the C2+50% formula. This formula includes the imputed cost of capital and rent on the land (referred to as ‘C2’) to provide farmers with a 50% return on their investment.
The imputed cost is used to account for the opportunity cost of using resources like land, labor, and capital.
Specifically, the imputed cost of capital represents the interest or returns that could have been earned if the capital invested in farming had been invested elsewhere.
The farmers’ other demands include: Full debt waiver for farmers and laborers. Implementation of the Land Acquisition Act of 2013, requiring written consent from farmers before acquisition and compensation at four times the collector rate. (The collector rate is the minimum value at which a property can be registered during a sale, serving as a reference point to prevent undervaluation and tax evasion.)
Punishment for those responsible for the October 2021 Lakhimpur Kheri killings.
Withdrawal from the World Trade Organization (WTO) and a freeze on all free trade agreements (FTAs). Pensions for farmers and farm laborers. Compensation for farmers who died during the Delhi protests in 2020, along with a job for one family member of the deceased.
Scrapping of the Electricity Amendment Bill 2020. Extension of employment under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) to 200 days per year, with a daily wage of Rs 700, and linking the scheme to farming.
Strict penalties and fines for companies producing fake seeds, pesticides, and fertilizers, along with improvements in seed quality. Establishment of a national commission for spices such as chili and turmeric. Assurance of indigenous peoples’ rights over water, forests, and land.
