{"id":147729,"date":"2024-12-19T20:31:47","date_gmt":"2024-12-19T15:01:47","guid":{"rendered":"https:\/\/pwonlyias.com\/stage\/?post_type=current-affairs&#038;p=147729"},"modified":"2025-02-13T15:58:17","modified_gmt":"2025-02-13T10:28:17","slug":"standing-committee-of-parliament","status":"publish","type":"current-affairs","link":"https:\/\/pwonlyias.com\/stage\/current-affairs\/standing-committee-of-parliament","title":{"rendered":"Standing Committee of Parliament Recommends Legalised MSP"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Recently, the <\/span><b>Parliamentary Standing Committee on Agriculture, Animal Husbandry and Food Processing<\/b><span style=\"font-weight: 400;\"> has recommended implementing a <\/span><b>legal guarantee on Minimum Support Price<\/b><span style=\"font-weight: 400;\">, amid a slew of measures to improve farmers\u2019 welfare.<\/span><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>About the Committee<\/b><\/span><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">The Standing Committee on Agriculture, Animal Husbandry and Food Processing is a <\/span><b>parliamentary committee <\/b><span style=\"font-weight: 400;\">that <\/span><b>monitors the executive branch<\/b><span style=\"font-weight: 400;\"> of the government and provides <\/span><b>advice to the ministries<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li><b>History: <\/b><span style=\"font-weight: 400;\">The committee was first established in<\/span><b> 1993 during the Tenth Lok Sabha.\u00a0<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">It was originally called the <\/span><b>Committee on Agriculture<\/b><span style=\"font-weight: 400;\">, but its name was changed<\/span><b> in 2021 <\/b><span style=\"font-weight: 400;\">to include animal husbandry and food processing.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The<\/span><b> Ministry of Cooperation<\/b><span style=\"font-weight: 400;\"> was also added to its jurisdiction in 2021.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Responsibilities: <\/b><span style=\"font-weight: 400;\">The committee <\/span><b>monitors the executive branch of the governmen<\/b><span style=\"font-weight: 400;\">t, ensures accountability, and improves the functioning of the ministries.\u00a0<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">It also provides <\/span><b>recommendations on issues<\/b><span style=\"font-weight: 400;\"> such as budgetary allocations for agriculture and climate resilient farming.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Composition: <\/b><span style=\"font-weight: 400;\">The Committee, constituted under <\/span><b>Rule 331C of the Rules of Procedure and Conduct of Business in Lok Sabha<\/b><span style=\"font-weight: 400;\">, consists of 31 me<\/span><b>mbers<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span>\n<ul>\n<li><b>21 members from Lok Sabha<\/b><span style=\"font-weight: 400;\">, nominated by the Speaker, Lok Sabha, and\u00a0<\/span><\/li>\n<li><b>10 from Rajya Sabha<\/b><span style=\"font-weight: 400;\"> nominated by the Chairman, Rajya Sabha.\u00a0\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The <\/span><b>Chairperson<\/b><span style=\"font-weight: 400;\"> of the Committee is appointed by the Speaker from <\/span><b>amongst the members of the Committee from Lok Sabha.<\/b><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/www.pw.live\/batches\/upsc?utm_source=seo+upsc+batch&#038;utm_medium=seo+upsc&#038;utm_campaign=seo&#038;utm_id=upsc\" target=\"_blank\" rel=\"noopener\">Enroll now for UPSC Online Course<\/a><\/span><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>Recommendation of Parliamentary Standing Committee on Agriculture<\/b><\/span><\/h2>\n<ul>\n<li aria-level=\"1\"><b>Legal Guarantee of MSP: <\/b><span style=\"font-weight: 400;\">The committee has strongly recommended implementing a<\/span><b> legally binding MSP<\/b><span style=\"font-weight: 400;\"> to ensure financial stability for farmers.<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">The committee emphasized that MSP <\/span><b>aligns with national food security <\/b><span style=\"font-weight: 400;\">objectives by <\/span><b>stabilizing foodgrain production<\/b><span style=\"font-weight: 400;\"> and supporting <\/span><b>public distribution systems<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">It has proposed a roadmap for the<\/span><b> implementation of a legal MSP<\/b><span style=\"font-weight: 400;\"> and periodic reporting to Parliament on MSP coverage and market price gaps.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Compensation for Paddy Stubble Management: <\/b><span style=\"font-weight: 400;\">The committee recommended <\/span><b>compensating farmers for managing and disposing of crop residue<\/b><span style=\"font-weight: 400;\">, such as paddy stubble, to address environmental concerns.<\/span><\/li>\n<li><b>Increasing Support Under PM-KISAN Scheme: <\/b><span style=\"font-weight: 400;\">The committee proposed increasing monetary support under the PM-KISAN Samman Nidhi scheme from <\/span><b>\u20b96,000 to \u20b912,000 per annum<\/b><span style=\"font-weight: 400;\">.<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">It also recommended extending seasonal incentives to tenant farmers and farm labourers.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The committee cited a significant <\/span><b>imbalance between rural income growth (57.6%) and expenditure growth (69.4%)<\/b><span style=\"font-weight: 400;\">, highlighting the need for enhanced support to reduce borrowing.<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Debt Waiver for Farmers: <\/b><span style=\"font-weight: 400;\">To combat rising farmer distress and suicides, the committee recommended a debt waiver scheme for farmers and farm labourers.<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">It highlighted data from the <\/span><b>NABARD<\/b><span style=\"font-weight: 400;\"> survey showing an increase in rural borrowing, with <\/span><b>52% of rural families in debt by 2021-22 compared to 47.4% in 2016-17<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Increasing Budgetary Allocations to Agriculture: <\/b><span style=\"font-weight: 400;\">The committee called for <\/span><b>higher budgetary allocations<\/b><span style=\"font-weight: 400;\"> to agriculture, noting a decline in its percentage share of the central plan <\/span><b>from 3.53% in 2020-21 to 2.54% in 2024-25.<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Despite absolute increases, agriculture&#8217;s growth rate <\/span><b>declined to 1.4% in 2023-24, the lowest in seven years.<\/b><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Universal Crop Insurance: <\/b><span style=\"font-weight: 400;\">The committee suggested implementing <\/span><b>compulsory universal crop insurance for smallholder farmers with landholdings of up to 2 acres<\/b><span style=\"font-weight: 400;\">, modeled after the Pradhan Mantri Jan Arogya Yojana (PM-JAY).<\/span><\/li>\n<li><b>Establishment of a National Commission for Farm Labourers: <\/b><span style=\"font-weight: 400;\">It recommended establishing a <\/span><b>National Commission for Minimum Living Wages for Farm Labourers<\/b><span style=\"font-weight: 400;\"> to address their long-standing rights.<\/span><\/li>\n<li aria-level=\"1\"><b>Renaming the Agriculture Department: <\/b><span style=\"font-weight: 400;\">The committee proposed <\/span><b>renaming<\/b><span style=\"font-weight: 400;\"> the Department of Agriculture and Farmers Welfare to the Department of Agriculture, Farmers, and Farm Labourers Welfare to reflect a broader focus on agricultural labor welfare.<\/span><\/li>\n<\/ul>\n<div class=\"vc_table_green\"><\/p>\n<table style=\"width: 99.8996%;\">\n<tbody>\n<tr>\n<th style=\"width: 100%; border-style: solid; border-color: #000000; background-color: rgba(184, 165, 217, 0.53); text-align: left; vertical-align: middle;\">\n<h2><span style=\"font-size: 18pt; color: #000000;\"><b>About Minimum Support Price<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">MSP is the <\/span><b>guaranteed price paid to farmers<\/b><span style=\"font-weight: 400;\"> when the government <\/span><b>purchases their produce.<\/b><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">MSP was historically introduced in the <\/span><b>1960s to stabilize prices during bumper production years <\/b><span style=\"font-weight: 400;\">and incentivize crop cultivation.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">It is based on recommendations by the <\/span><b>Commission for Agricultural Costs and Prices (CACP)<\/b><span style=\"font-weight: 400;\">, which evaluates factors such as <\/span><b>production cost, demand-supply dynamics, market trends, and price parity between crops.<\/b><\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">CACP, an attached office of the <\/span><b>Ministry of Agriculture and Farmers Welfare<\/b><span style=\"font-weight: 400;\">, was established in January 1965.<\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">The <\/span><b>Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister,<\/b><span style=\"font-weight: 400;\"> takes the final decision on the level of MSPs.<\/span><\/span><\/li>\n<\/ul>\n<h3><span style=\"font-size: 16pt; color: #000000;\"><b>Objective of MSP<\/b><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">MSP aims to <\/span><b>ensure remunerative prices for farmers\u2019 produce<\/b><span style=\"font-weight: 400;\"> and promote crop diversification.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">CACP recommends <\/span><b>MSP\/FRP for 23 mandated crops<\/b><span style=\"font-weight: 400;\">.<\/span><\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"color: #000000;\"><b>7 cereals <\/b><span style=\"font-weight: 400;\">(paddy, wheat, maize, sorghum, pearl millet, barley and ragi),\u00a0<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"color: #000000;\"><b>5 pulses <\/b><span style=\"font-weight: 400;\">(gram, tur, moong, urad, lentil),\u00a0<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"color: #000000;\"><b>7 oilseeds<\/b><span style=\"font-weight: 400;\"> (groundnut, rapeseed-mustard, soyabean, seasmum, sunflower, safflower, nigerseed), and\u00a0<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"color: #000000;\"><b>4 commercial crops<\/b><span style=\"font-weight: 400;\"> (copra, sugarcane, cotton and raw jute).<\/span><\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"color: #000000;\"><b>Fair and Remunerative Prices (FRP) for sugarcane<\/b><span style=\"font-weight: 400;\"> decided on recommendations of the<\/span><b> CACP in consultations with the State Government<\/b><span style=\"font-weight: 400;\"> and other stakeholders.<\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">In addition, the MSPs of <\/span><b>toria and de-husked coconut<\/b><span style=\"font-weight: 400;\"> are fixed on the basis of the MSPs of rapeseed\/mustard and copra, respectively.<\/span><\/span><\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt; color: #000000;\"><b>Types of Production Costs Considered by CACP<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>A2 Cost:<\/b><span style=\"font-weight: 400;\"> Includes all paid-out costs such as seeds, fertilisers, pesticides, hired labour, fuel, etc.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>A2+FL Cost: <\/b><span style=\"font-weight: 400;\">Adds the imputed value of unpaid family labour to A2.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>C2 Cost:<\/b><span style=\"font-weight: 400;\"> A more comprehensive cost that includes A2+FL, along with interest and rentals for owned land and fixed capital.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>A2+FL<\/b><span style=\"font-weight: 400;\"> is used to <\/span><b>calculate returns<\/b><span style=\"font-weight: 400;\">, while C2 serves as a benchmark to ensure MSPs at least cover production costs in major producing states.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">CACP reckons<\/span><b> only A2+FL cost<\/b><span style=\"font-weight: 400;\"> for determining MSP <\/span><b>(~1.5X (A2+FL))<\/b><\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400; color: #000000;\">However, C2 costs are used by CACP primarily as benchmark reference costs (opportunity costs) to see if the MSPs recommended by them at least cover these costs in some of the major producing States.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/div>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+CSE+Books\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Check Out UPSC CSE Books From PW Store<\/span><\/a><\/span><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>Advantages of Legal Guarantee of MSP<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Income Security for Farmers: <\/b><span style=\"font-weight: 400;\">A legal MSP ensures that farmers receive a fair price for their produce, reducing income volatility caused by market fluctuations.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>In 2021-22, only 6% of farmers benefitted from MSP<\/b><span style=\"font-weight: 400;\"> due to limited procurement. A legal guarantee could expand coverage to more farmers\u200b\u200b.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The <\/span><b>Swaminathan Committee\u2019s recommendation<\/b><span style=\"font-weight: 400;\"> to set MSP at least 50% higher than the weighted average cost of production (C2 costs) should be implemented to provide fair compensation to farmers.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Reduction in Farmer Suicides: <\/b><span style=\"font-weight: 400;\">Financial stability through <\/span><b>assured pricing can alleviate debt burdens<\/b><span style=\"font-weight: 400;\">, a major cause of farmer suicides in India.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>At least 11,290 people<\/b><span style=\"font-weight: 400;\"> working in the agricultural sector have <\/span><b>committed suicide<\/b><span style=\"font-weight: 400;\"> in the past decade in India, according to data by the <\/span><b>National Crime Record Bureau.<\/b><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Encouragement for Crop Diversification: <\/b><span style=\"font-weight: 400;\">A legal MSP can <\/span><b>incentivize farmers to grow alternative crops <\/b><span style=\"font-weight: 400;\">like pulses, oilseeds, and millets, reducing dependence on wheat and rice.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Guaranteed MSP for millets aligns with India\u2019s efforts during the <\/span><b>International Year of Millets 2023 <\/b><span style=\"font-weight: 400;\">to promote sustainable agriculture.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Enhanced Rural Economic Growth: <\/b><span style=\"font-weight: 400;\">Increased farmer income leads to higher rural spending, stimulating local businesses and economies.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>NABARD&#8217;s<\/b><span style=\"font-weight: 400;\"> 2022-23 survey highlighted a<\/span><b> 57.6% rise in rural incomes over five years, <\/b><span style=\"font-weight: 400;\">which could grow further with stable agricultural income.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Food Security and Public Distribution: <\/b><span style=\"font-weight: 400;\">A robust MSP ensures consistent production of staple crops, <\/span><b>supporting India\u2019s Public Distribution System (PDS).<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The <\/span><b>Food Corporation of India procured 43% of rice and 36% of wheat<\/b><span style=\"font-weight: 400;\"> production in 2019-20, ensuring food supply for welfare schemes\u200b.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Empowerment of Marginal Farmers: <\/b><span style=\"font-weight: 400;\">Legal MSP would <\/span><b>formalize market transactions<\/b><span style=\"font-weight: 400;\">, reducing exploitation by middlemen.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Farmers often s<\/span><b>ell at prices below MSP due to lack of buyers,<\/b><span style=\"font-weight: 400;\"> especially in states with weak market linkages.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Disadvantages of Legal Guarantee of MSP<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Fiscal Burden on the Government: <\/b><span style=\"font-weight: 400;\">Expanding MSP coverage requires significant resources for procurement, storage, and distribution.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Implementing MSP for<\/span><b> all 23 crops may require \u20b96 lakh crore <\/b><span style=\"font-weight: 400;\">as working capital annually\u200b.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Inflationary Pressures: <\/b><span style=\"font-weight: 400;\">Higher MSP rates can increase food prices, impacting consumers, especially the poor.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">A 1% increase in MSP for rice and wheat has shown to r<\/span><b>aise retail prices by 0.22%\u200b<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>State Policy Variation:<\/b><span style=\"font-weight: 400;\"> Agricultural policies and conditions vary significantly across states.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">A <\/span><b>one- size-fits-all approach<\/b><span style=\"font-weight: 400;\"> may not be effective, suggesting a need for state-specific policies.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Skewed Focus on Certain Crops: <\/b><span style=\"font-weight: 400;\">Legal MSP might continue the <\/span><b>overemphasis on wheat and rice<\/b><span style=\"font-weight: 400;\">, neglecting more sustainable crops like pulses and millets.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Most of the field crop production is dominated by<\/span><b> wheat and paddy<\/b><span style=\"font-weight: 400;\"> due to assured procurement.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Market Distortions: <\/b><span style=\"font-weight: 400;\">Statutory MSP could <\/span><b>deter private buyers from purchasing crops below the fixed price<\/b><span style=\"font-weight: 400;\">, making the government the primary buyer.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The <\/span><b>National Food Security Act (NFSA)<\/b><span style=\"font-weight: 400;\"> already faces challenges in <\/span><b>storing excess wheat and rice <\/b><span style=\"font-weight: 400;\">due to procurement limits.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Environmental Degradation: <\/b><span style=\"font-weight: 400;\">Guaranteed MSP for<\/span><b> water-intensive crops like rice and sugarcane <\/b><span style=\"font-weight: 400;\">exacerbates groundwater depletion and soil degradation.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Punjab and Haryana,<\/b><span style=\"font-weight: 400;\"> major MSP beneficiaries, face severe <\/span><b>water table decline<\/b><span style=\"font-weight: 400;\"> due to extensive paddy cultivation.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>WTO Compliance Issues: <\/b><span style=\"font-weight: 400;\">Legal MSP could conflict with WTO\u2019s <\/span><b>de minimis<\/b><span style=\"font-weight: 400;\"> rule, which caps subsidies at<\/span><b> 10% of total farm output.<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">India has faced <\/span><b>WTO challenges over its subsidies under the MSP<\/b><span style=\"font-weight: 400;\"> regime for rice exports.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<div class=\"vc_table_green\"><\/p>\n<table style=\"width: 99.7992%;\">\n<tbody>\n<tr>\n<th style=\"width: 100%; border-style: solid; border-color: #000000; background-color: rgba(184, 165, 217, 0.53); text-align: left; vertical-align: middle;\"><span style=\"color: #000000;\"><b>WTO\u2019s de minimis rule:<\/b><\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">The World Trade Organization&#8217;s (WTO) de minimis rule allows for <\/span><b>minimal amounts of domestic support<\/b><span style=\"font-weight: 400;\"> to be used, even if they<\/span><b> distort trad<\/b><span style=\"font-weight: 400;\">e.\u00a0<\/span><\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"color: #000000;\"><b>Developed countries:<\/b><span style=\"font-weight: 400;\"> Up to 5% of the value of production<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"color: #000000;\"><b>Developing countries: <\/b><span style=\"font-weight: 400;\">Up to 10% of the value of production<\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">The term &#8220;de minimis&#8221; comes from the <\/span><b>Latin phrase De minimis non curat Lex<\/b><span style=\"font-weight: 400;\">, which means &#8220;<\/span><b>the law cares not for small things<\/b><span style=\"font-weight: 400;\">&#8220;.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">The de minimis rule applies to domestic support measures that favor <\/span><b>agricultural producers<\/b><span style=\"font-weight: 400;\">, such as direct production subsidies, input subsidies, and market price support measures.<\/span><\/span><\/li>\n<\/ul>\n<\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/div>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books\/upsc-textbooks?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+Textbooks\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Check Out UPSC NCERT Textbooks From PW Store<\/span><\/a><\/span><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>Agricultural Schemes Related to MSP in India<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) (2018)<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Objective<\/b><span style=\"font-weight: 400;\">: Ensure remunerative prices to farmers for their produce through price assurance schemes.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Components<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><b>Price Support Scheme (PSS)<\/b><span style=\"font-weight: 400;\">: Central procurement of pulses and oilseeds at MSP by NAFED and FCI.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><b>Price Deficiency Payment Scheme (PDPS)<\/b><span style=\"font-weight: 400;\">: Farmers are compensated for the difference between MSP and the actual market price.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><b>Private Procurement and Stockist Scheme (PPSS)<\/b><span style=\"font-weight: 400;\">: Empowers private entities to procure crops at MSP in certain areas.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Implemented for oilseeds in states like Madhya Pradesh under PDPS.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>National Food Security Act (NFSA), 2013<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Objective<\/b><span style=\"font-weight: 400;\">: Ensure food security by procuring rice and wheat at MSP for distribution under PDS.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Significance<\/b><span style=\"font-weight: 400;\">: Supports large-scale MSP-based procurement for key food grains.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>e-National Agriculture Market (e-NAM) (2016)<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Objective<\/b><span style=\"font-weight: 400;\">: Create a unified online marketplace for farmers to sell produce at fair prices.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Ensures better price realization for farmers through transparent auctions and market linkages.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Rashtriya Krishi Vikas Yojana (RKVY) (2007)<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Objective<\/b><span style=\"font-weight: 400;\">: Provide flexibility to states for implementing schemes promoting agricultural growth, including MSP awareness campaigns.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Significance<\/b><span style=\"font-weight: 400;\">: Supports MSP-related activities like procurement infrastructure development and farmer training programs.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Procurement Schemes by Food Corporation of India (FCI)<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Objective<\/b><span style=\"font-weight: 400;\">: Procure food grains like wheat and rice at MSP for PDS and buffer stocks.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Significance<\/b><span style=\"font-weight: 400;\">: Acts as a major mechanism for implementing MSP for food grains.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>State-Level Schemes<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Mukhya Mantri Bhavantar Bhugtan Yojana (Madhya Pradesh)<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><b>Objective<\/b><span style=\"font-weight: 400;\">: Provide price deficiency payment to farmers when the market price falls below MSP.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><b>Implementation<\/b><span style=\"font-weight: 400;\">: Farmers receive compensation for crops like soybean, maize, and paddy.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Telangana\u2019s Rythu Bandhu Scheme<\/b><span style=\"font-weight: 400;\">: Provides financial support for crop production to reduce dependency on MSP.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Karnataka\u2019s Raitha Siri Scheme<\/b><span style=\"font-weight: 400;\">: Promotes millet cultivation with guaranteed MSP.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Way Forward for Legal Guarantee of MSP<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Adopt Regional and Crop-Specific MSP Strategies: <\/b><span style=\"font-weight: 400;\">Tailor MSP implementation to <\/span><b>regional agricultural practices<\/b><span style=\"font-weight: 400;\"> and focus on promoting <\/span><b>diverse crops <\/b><span style=\"font-weight: 400;\">like millets, pulses, and oilseeds.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">States like <\/span><b>Karnataka<\/b><span style=\"font-weight: 400;\"> have experimented with region-specific MSP for ragi and millets under their state-level schemes.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Strengthen Agricultural Infrastructure: <\/b><span style=\"font-weight: 400;\">Develop <\/span><b>robust procurement systems, storage facilities, and transport networks<\/b><span style=\"font-weight: 400;\"> to support increased MSP operations effectively.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The <\/span><b>Food Corporation of India (FCI) <\/b><span style=\"font-weight: 400;\">often faces<\/span><b> wastage issues <\/b><span style=\"font-weight: 400;\">due to inadequate storage facilities, especially during bumper harvests.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Promote Sustainable Farming Practices: <\/b><span style=\"font-weight: 400;\">Link MSP with <\/span><b>sustainable farming incentives<\/b><span style=\"font-weight: 400;\">, such as adopting less water-intensive crops and organic farming.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Punjab and Haryana, facing groundwater depletion<\/b><span style=\"font-weight: 400;\"> due to paddy cultivation, could be incentivized to grow millets and pulses under MSP guarantees.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Leverage Technology for Transparent Procurement: <\/b><span style=\"font-weight: 400;\">Introduce <\/span><b>digital platforms <\/b><span style=\"font-weight: 400;\">for farmers to register produce, check MSP rates, and track procurement processes.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>E-NAM (National Agriculture Market) <\/b><span style=\"font-weight: 400;\">has successfully integrated farmers into digital marketplaces, reducing middlemen exploitation.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Expand Farmer Awareness Programs: <\/b><span style=\"font-weight: 400;\">Conduct<\/span><b> large-scale campaigns <\/b><span style=\"font-weight: 400;\">to educate farmers on MSP benefits, rights, and legal enforcement mechanisms.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">According to a <\/span><b>2015 Shanta Kumar Committee report<\/b><span style=\"font-weight: 400;\">, only<\/span><b> 6% of farmers<\/b><span style=\"font-weight: 400;\"> were aware of MSP benefits, highlighting the need for awareness programs.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Ensure WTO Compliance: <\/b><span style=\"font-weight: 400;\">Rework MSP policies to align with WTO rules, such as the <\/span><b>de minimis<\/b> <b>limit of 10% <\/b><span style=\"font-weight: 400;\">of the value of agricultural production for subsidies.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">India can <\/span><b>utilize exemptions under food security <\/b><span style=\"font-weight: 400;\">provisions to safeguard MSP policies from international challenges.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Establish a National Agricultural Pricing Commission: <\/b><span style=\"font-weight: 400;\">Set up an <\/span><b>independent body to decide MSP <\/b><span style=\"font-weight: 400;\">levels transparently, factoring in production costs, environmental sustainability, and market demand.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Such a body can avoid<\/span><b> politicization of MSP rates<\/b><span style=\"font-weight: 400;\">, ensuring fairness and predictability for farmers.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/www.pw.live\/batches\/upsc\/pw-only-ias?utm_source=seo+upsc+batch&#038;utm_medium=seo+upsc&#038;utm_campaign=seo&#038;utm_id=upsc\" target=\"_blank\" rel=\"noopener\">Enroll now for UPSC Online Classes<\/a><\/span><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>Conclusion<\/b><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The legal guarantee for MSP is a significant step toward farmer welfare. However, for it to succeed, it must be complemented with regional customization, improved infrastructure, awareness, and alignment with sustainability and global trade norms. This holistic approach can make MSP an effective tool for agricultural growth and rural stability.<\/span><\/p>\n<span class=\"vc_button\"><b>Additional Reading: <\/b><a href=\"https:\/\/pwonlyias.com\/stage\/minimum-support-price-msp\/\" target=\"_blank\" rel=\"noopener\"><b>Minimum Support Price (MSP)<\/b><\/a><\/span>\n<div class=\"vc_table_green\"><\/p>\n<table style=\"width: 99.6375%;\">\n<tbody>\n<tr>\n<td style=\"width: 111.19%; text-align: center;\" colspan=\"2\"><span style=\"font-size: 18pt;\"><b>Also Read<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 49.797%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/editorial-analysis\/\" target=\"_blank\" rel=\"noopener\"><b>UPSC Daily Editorials<\/b><\/a><\/td>\n<td style=\"width: 61.393%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/daily-current-affairs\/\" target=\"_blank\" rel=\"noopener\"><b>UPSC Daily Current Affairs<\/b><\/a><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 49.797%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/quiz\/\" target=\"_blank\" rel=\"noopener\"><b>Daily Current Affairs Quiz<\/b><\/a><\/td>\n<td style=\"width: 61.393%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/mains-answer-writing\/\" target=\"_blank\" rel=\"noopener\"><b>Daily Main Answer Writing<\/b><\/a><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 49.797%; text-align: center;\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books\/upsc-previous-year-papers?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+Previous+Year+Papers\" target=\"_blank\" rel=\"noopener\"><b>Check Out Previous Years Papers From PW Store<\/b><\/a><\/td>\n<td style=\"width: 61.393%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/upsc-test-series-courses\/\" target=\"_blank\" rel=\"noopener\"><b>UPSC Test Series<\/b><\/a><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 49.797%; text-align: center;\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books\/upsc-textbooks?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+Textbooks\" target=\"_blank\" rel=\"noopener\"><b>Check Out UPSC NCERT Textbooks From PW Store<\/b><\/a><\/td>\n<td style=\"width: 61.393%; text-align: center;\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books\/upsc-modules?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+Modules\" target=\"_blank\" rel=\"noopener\"><b>Check Out UPSC Modules From PW Store<\/b><\/a><b>\u00a0<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Parliamentary Standing Committee on Agriculture, Animal Husbandry and Food Processing has recommended implementing a legal guarantee on Minimum Support Price, amid a slew of measures to improve farmers\u2019 welfare.<\/p>\n","protected":false},"author":11,"featured_media":147657,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"tags":[],"paper-wise":[2089],"subject":[2100],"acf":[],"_links":{"self":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/147729"}],"collection":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs"}],"about":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/types\/current-affairs"}],"author":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/comments?post=147729"}],"version-history":[{"count":2,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/147729\/revisions"}],"predecessor-version":[{"id":147731,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/147729\/revisions\/147731"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/media\/147657"}],"wp:attachment":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/media?parent=147729"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/tags?post=147729"},{"taxonomy":"paper-wise","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/paper-wise?post=147729"},{"taxonomy":"subject","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/subject?post=147729"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}