What Swaminathan panel said
- The Punjab farmers, amidst ongoing protests, have demanded a law to ensure the procurement of all crops at Minimum Support Price (MSP), as recommended by the Dr. Swaminathan Commission.
- Despite inconclusive talks, negotiations between farm unions and Union Ministers continue, with the fourth round scheduled for Sunday.
Swaminathan Commission
- On November 18, 2004, the Ministry of Agriculture constituted a National Commission on Farmers (NCF) under Prof Swaminathan.
- Agricultural scientist M S Swaminathan was posthumously awarded the Bharat Ratna this month.
- It focused on enhancing food and nutrition security and improving the productivity, profitability, and sustainability of farming systems.
- The commission submitted five reports suggesting various measures to address agricultural distress and promote farmers' welfare.
- The reports were deeply sympathetic to farmers, and made several recommendations, including at least two on MSP.
Key Recommendations
- First report titled "Serving Farmers and Saving Farming”
- It highlighted the need for a comprehensive approach to address agricultural distress.
- It proposed initiatives such as a new deal for women in agriculture and the establishment of farm schools.
- The commission also advocated for the establishment of a grain bank, community food and fodder banks, and advanced soil testing labs.
- Second report titled "From Crisis to Confidence"
- It recommended a code of conduct for contract farming and amendments to state APMC Acts and the Essential Commodities Act.
- These recommendations echoed pro-market reforms and anticipated reforms similar to the farm laws introduced by the present government in 2020.
Minimum Support Prices (MSP)
- Contrary to the demands of protesting farmers, the Swaminathan Commission did not recommend fixing MSP based on C2 (actual cost of production) plus 50 percent.
- Instead, it emphasized avoiding delays in announcing MSP and improving MSP implementation across regions.
- While the commission discussed the cost of production, it did not propose a specific formula for MSP calculation.
Conclusion
- Despite weaknesses in MSP implementation, the Swaminathan Commission advocated for MSP as the bottom line for procurement.
- It recommended that MSP should be at least 50 percent more than the weighted average cost of production.
- The commission's reports have been instrumental in shaping discussions on agricultural reforms and farmers' demands for MSP guarantee.