The Minimum Support Price ( MSP )
By Justice Markandey Katju
The agitating farmers in India are demanding MSP for their agricultural products, and this demand needs to be considered.
Agriculture is subsidised in almost every country in the world. Details are given in this link
Why is it that agriculture needs to be subsidised, and not treated like ordinary industries which are usually left to the free play of market forces ?
The answer is that agriculture is not like other industries. It produces food, which like air and water, is absolutely essential for survival. One can do without, or only be inconvenienced, by lack of a TV set, car or refrigerator. But one cannot do without food. Steel, cement, etc are consumed by other industries, but food is consumed by the human body, and is vital for its sustenance.
With the coming of modern industry there was a great increase in population, and this required a great increase in food production. The problem for farmers, however, was that they could not themselves market their products, and had to depend on traders. These traders would take the farm products from the rural farms to the cities for sale to the whole sellers, who in turn sold them to retailers, who then sold them to the customers. The farmers were often at the mercy of these traders, and had to accept whatever price was offered by the latter, otherwise their produce could not be sold. This made farming unprofitable, and that is why state support was required for them, otherwise they would give up farming, and then large sections of the country would starve..
An MSP is therefore absolutely essential for agricultural production to feed our huge population of 135-140 crores.
The Indian government has said it will maintain MSP. But oral or written assurances mean nothing, as they are not binding. MSP must be provided by a statute, which also provides for punishment for traders buying below the MSP. The 3 farmers laws enacted by Parliament recently, therefore suffer from the crucial defect that while they enable farmers free to sell their produce wherever they wish, they do not provide for MSP by law.
Sir, I am myself a farmer and know how unremunerative farming is. Kasan has always been exploited by traders, cartlers and arhityas. FCI procures some produce at MSP but most of it is procured in Punjab, Haryana and Western UP, other parts of the country have to sell it in Mandis only where maximum exploitation of farmers takes place. In places where FCI procures farm produce, it is mostly procured through Arhityas and big farmers. There is a nexus between these Arhityas and FCI officials. Arhityas purchase the produce from a large number of farmers at a very low price in Mandis and sell it to FCI at MSP in the name of small farmers from whom they purchase it, thus making a big booty. Govt has done the right thing to eliminate these middle men. But now they should bring in a new legislation on MSP making it a punishable offence to purchase farm produce below MSP. Further, onions and potatoes should also be brought under MSP.
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