Speaking at the Rajya Sabha, Prime Minister Narendra Modi assured the farmers once again that Prime Minister Narendra Modi said that the minimum support price (MSP) to farmers was even before, is still and will continue to be.
Speaking at the Rajya Sabha, Prime Minister Narendra Modi assured the farmers once again that Prime Minister Narendra Modi said that the minimum support price (MSP) to farmers was even before, is still and will continue to be. He said that in the coming days, mandis will be be modernized on a large scale across the country. At the same time, he said that Rashin’s schemes being run for the poor will also be continued. The Prime Minister said that the government is continuously working for small farmers. The number of farmers who have little land is increasing rapidly. He said that after 2014 the scope of crop insurance scheme was extended. In the last five years 90 thousand crores have been given as claims under this scheme.
Government steps for small farmers Government steps for small farmers
The Prime Minister said that Kisan Credit Cards are being given to small farmers. Thirty-two crore farmers have been given this credit card (KCC). He said that through the Pradhan Mantri Samman Nidhi Yojana (PM Kisan Samman Nidhi Yojna), assistance is being given directly to the account of the farmer. So far, more than 10 crore farmers are getting the scheme. We started the soil health card scheme, neem coated urea scheme. Pension scheme was launched for farmers. Efforts are being made to make better roads in the villages and to make farmers get higher prices for their produce through Kisan Rail.
Farmer Kisan Andolan has been performing for two months
Farmers Protest: Regardless of the bitter cold and hunger, the farmer called the Annadata of the country has been on the streets (Kisan Andolan) for more than 2 months. Hundreds of kilometers away, leaving the comforts of their home, thousands of farmers are sitting on the streets of Delhi’s border. During this time, the peasant movement has also taken violent forms. One thing is coming out repeatedly in the farmers agitation and that is the minimum support price of crops i.e. MSP. Farmers say that the government’s intention is to end the minimum support price system behind the three new farm laws that the government has recently enacted. However, the government is repeatedly reiterating that the new laws will not make any difference to the existing system, but the farmers will in turn benefit. The MSP system will run as before.
What is Minimum support price
MSP is the minimum support price or minimum support price. On behalf of the MSP government, the prices of some crops with grain of farmers are guaranteed. Under this ration system, the government buys their crops from farmers on this MSP to provide food grains to the needy people. Regardless of the rate of that crop in the market, the government will buy it only on the fixed MSP. It is beneficial that the farmers get to know about a fixed price of their crop and how much their crop prices are going up. However, the prices of the same crop in the market can be up or down. It is dependent on the willingness of the farmer to sell the crop to the government at MSP or to the merchant at a fixed price with mutual consent.
Who decides MSP
The CACP, the minimum support price for crops, determines the Commission for Agricultural Costs and Prices. The CACP fixes prices for almost all crops. However, the support price of sugarcane determines the sugarcane commission. The Commission sends its suggestions to the government by fixing the minimum price of crops based on the cost of farming over time. The government announces the MSP after studying these suggestions.
Benefits of MSP
The biggest advantage of deciding the MSP is that even if the price of the crop falls in the market, it is still a matter of satisfaction that the government will get a fixed price on selling that crop. MSP formula to decide (MSP formula) When the Modi government came to the center, it took the initiative to adopt new formula to fix MSP one and a half times the cost of the crop. The Swaminathan Commission was formed in 2004 for agricultural reforms. The Commission had suggested several formulas for fixing the MSP. Dr. MS Swaminathan Committee recommended that MSP should be at least 50 percent more than the average production cost.
How to get Crop Procurement
Every year the minimum support price of crops is fixed before sowing. The MSP is fixed for every Kharif and Rabi season. Many farmers sow crops only after seeing MSP. The government purchases food grains from farmers through various agencies on MSP. The government makes a buffer stock of grains by purchasing on MSP. After the government purchase, this grain is stored with FCI and NAFED. This grain is used for Public Distribution System (PDS). If there is a rise in any grain in the market, then the government removes the grain from its buffer stock in the open market and controls the prices.
MSP system problem
It is difficult to determine the cost of farmers’ crops. Small farmers are unable to sell their crops on MSP. The middlemen take advantage of MSP by purchasing crops from the farmer. Many crops are still outside the purview of MSP.
