Minimum Support Price Not Part Of Any Law

Minimum Support Price not part of any law: Agriculture Reforms Bill 2020. The agrarian bills passed by Parliament have been opposed in some states because they fear that the Minimum Support Price (MSP) system will end.

On the other hand, the government has assured that the MSP system is not going to end. The protesters are demanding to legalize this system. However, the truth is that MSP has not been part of any law until now.

No provision in the bill

There is no provision of MSP in the Agricultural Produce Trade and Commerce Bill-2020. The protesting farmers and political parties are demanding that the MSP be included in the bill.

Then what is the base? 

The Central Government currently fixes MSPs for 23 types of commodities on the recommendations of the Commission for Agricultural Costs and Prices (CACP). These include seven grains, five pulses, seven oilseeds, and four cash crops.

Explain that the CACP is not a statutory body recognized by the Parliament. The MSP was announced in 1965 to encourage farmers during the Green Revolution. However, it came into effect for the first time with the purchase of wheat in the year 1966–67.

CACP had suggested legislation: CACP had suggested legislation in the Price Policy Report during the Kharif season in 2018-19. It was then realized that trust would have to be created among the peasants to get a fair price for their produce.

The recent protest is associated with the wavering of the same faith. People are afraid that the mandis will end with the introduction of the new law and the dominance of big companies in purchasing crops will increase.

However, the government has made it clear that the mandis will remain.

Agriculture Minister Narendra Singh Tomar said that the three bills have nothing to do with the MSP. MSP was neither a part of any law before nor is it part of any law now.