In a significant move amid ongoing farmer protests in Haryana demanding the legalisation of Minimum Support Price (MSP), a parliamentary panel has strongly recommended the implementation of a robust and legally-binding MSP regime in the country. The committee emphasized that such a measure could serve as a critical tool in mitigating farmer suicides by ensuring financial stability, shielding farmers from market volatility, and alleviating debt burdens.
The Parliamentary Standing Committee on Agriculture, Animal Husbandry, and Food Processing, led by Congress MP Charanjit Singh Channi, presented its report on the Demands for Grants (2024-25) in Parliament on Tuesday. Among its notable recommendations was a proposal to rename the Department of Agriculture and Farmers Welfare to the Department of Agriculture, Farmers, and Farm Labourers Welfare, to acknowledge the essential contributions of agricultural labourers.
Key Recommendations from the Panel
- Legally-Binding MSP: The panel underscored the necessity of a legally-enforced MSP framework to address the agrarian crisis and protect farmers from financial hardships.
- Doubling PM-Kisan Entitlement: It proposed increasing the annual entitlement under the PM-Kisan Nidhi scheme from Rs 6,000 to Rs 12,000 to enhance the financial security of small farmers.
- Inclusive Incentives: Seasonal incentives for farmers should be extended to tenant farmers and farm labourers, ensuring equitable support for all stakeholders in agriculture.
- Universal Crop Insurance: The committee recommended exploring a universal crop insurance scheme for small farmers with landholdings of up to two hectares, modeled after the Pradhan Mantri Jan Arogya Yojana (PM-JAY) health insurance scheme.
- Living Wages for Farm Labourers: It called for the establishment of a National Commission for Minimum Living Wages for Farm Labourers to ensure their economic rights.
- Debt Waiver Scheme: The panel urged the government to introduce a scheme to waive off farm debts, addressing the root causes of agrarian distress and rising suicides.
Farmers’ Protests Escalate
The recommendations come against the backdrop of intensifying protests at the Shambhu and Khanauri borders between Haryana and Punjab. Farmers, who have been blocking these borders since February 2024, rejected fresh dialogue offers from the state government, insisting on direct talks with the Centre. The protesting farmers highlighted that while the MSP for wheat has risen by 56% between 2014 and 2024, inflation during the same period climbed by 56.53%, leaving their financial woes unaddressed. “Inflation has outpaced the increase in wheat MSP, further exacerbating our struggles,” stated a spokesperson for the protestors.
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Challenges in Agricultural Policy Implementation
The committee noted inefficiencies in fund utilization within the Department of Agriculture and Farmers Welfare. For instance, the allocation for capital outlay on economic services for 2023-24 was slashed from Rs 10.41 crore in the Budget Estimates (BE) to Rs 9.96 crore in the Revised Estimates (RE), with only Rs 3.389 crore ultimately utilized. The panel attributed this to delays in project execution and urged improved planning to ensure effective fund usage.
Need for Enhanced Budgetary Allocation
Although the department received increased allocations in absolute terms from 2021-22 to 2024-25, its share of the total central plan outlay declined from 3.53% in 2020-21 to 2.54% in 2024-25. The committee stressed the need to boost agricultural funding to enhance productivity and support.
The parliamentary panel’s report underscores the urgent need for systemic reforms to address the multifaceted challenges faced by India’s agricultural sector. By advocating for legally-binding MSP, doubling of financial assistance, and the inclusion of farm labourers, the committee’s recommendations aim to create a more inclusive and resilient agricultural ecosystem. Whether these proposals will translate into concrete action remains to be seen, but they have undoubtedly reignited the debate on the future of Indian agriculture.