Opinion Bhupinder Singh Hooda writes: Why MSP needs to be a legal right

First, MSP is the minimum price of agricultural produce that is necessary to keep agriculture financially viable. MSP is not the profitable value, although the word profit has been used in its estimation, it is the ground value. If the farmer does not get even this, then he would be pushed into debt. Only six per cent of farmers in the country get the benefit of MSP.

Second, the livelihood of about 50 per cent of the country’s population depends on agriculture and agriculture-related activities. It is the largest source of employment and livelihood. According to a 2019 NABARD report, the average debt burden on a farmer’s family is over Rs 1 lakh. This is despite the central and state governments providing farmers a subsidy of Rs 3.36 lakh crore. Clearly, farmers are not getting remunerative prices.
Third, natural disasters and market forces are hurting farmers. Climate change is increasing the complexity of farming. The farmer cannot be left at the mercy of weather and market forces.

A radical change in the approach to agriculture has become necessary. First, we must accept that the farmer is not just a medium or a machine to increase crop productivity, but a human being who wants to enjoy the comforts of the modern world. This is also his fundamental right. Therefore, the agriculture policy of our country should not only be production-centric, but also farmer-centric.

The burden of providing cheap grains to protect consumer interests can’t solely rest with the farmer. Often, even when farmers sell their produce at low prices, consumers buy them at exorbitant rates. For example, tomato farmers now get around Rs 4 to Rs 5 per kg while it is sold to the consumer at Rs 100 to Rs 120 per kg. This is because of middlemen; they need to be regulated.

The share of agriculture in the country’s GDP is at 17-18 per cent. The sector is central to the national economy. Agricultural incomes drive domestic consumption; if the agriculture sector is ignored, the country’s economy suffers.
No business has to deal with so many unpredictable factors and risks — extreme heat, floods, fire, frost, untimely rain, etc. Farmers remain uncertain and apprehensive about their income. MSP saves the farmer from debt and bankruptcy. Therefore, it needs to be secured with a legal guarantee.

During the nine years of the BJP government, the total outstanding loan on farmers increased from Rs 9.64 lakh crore on March 31, 2014, to Rs 23.44 lakh crore in 2021-22. The debt burden on farmers is rising due to minimal increase in MSPs and because he does not receive the declared MSP. If the farmer has to sell his produce at a price lower than the promised MSP, the latter becomes meaningless for the farmers. Therefore, legal guarantee of MSP is necessary.

When I was chairman of the Committee on Agriculture, I presented a resolution on MSP that was unanimously passed in the Indian National Congress session held at Raipur, Chhattisgarh. The contents of the resolution were:
One, Congress resolves that MSP should be made a legal right of the farmers. Buying agricultural produce below MSP will be a punishable offence.

Two, MSP should be calculated by adding 50 per cent profit on C2 cost, as recommended by the Swaminathan Commission and then by the Group of Chief Ministers (headed by me) in 2010, and the scope of MSP should be expanded to cover ginger, garlic, turmeric, chilli and all agricultural produce and horticulture.

Three, policymakers consider farming mainly in two phases — the first phase from sowing to harvesting, and the second phase from bringing the produce to the market to its sale. In both phases, the farmers are helpless as they have no control: In the first phase, natural disasters pose the threat while market forces can be a disrupting factor in the second phase.

Four, when the crop reaches the market, the farmer gets less weight, less price, delayed lifting, no payment, no buyer. No one is responsible for his plight. To change this situation, it is necessary to expand the concept of agri-business (farm to fork) and fix the farmer’s share in it.
Five, the process of calculating MSP is as important as the legal guarantee. Farmers want calculations to be made as suggested by the Swaminathan Commission.

Debt waivers by governments provide temporary relief to farmers, but it is not a sustainable solution. Continuous increases in agricultural input costs, farmers not getting a fair price for their produce, and losses caused by natural calamities are responsible for the rising debt.

The rising cost of education (of children) and health expenses (of the family) also contribute to debt. Therefore, the average expenditure incurred by the farmer on education and health services for his family must also be factored in when MSP is determined. A rational MSP is a better option than loan waivers, and it should be made a legal right so that farmers are assured of a decent income.

The writer is a senior Congress leader and former chief minister of Haryana