What is the issue of MSP ? Union Minister Harsimrat Kaur has also resigned

New Delhi – Union Minister Harsimrat Kaur has resigned due to concerns over MSP of crops. There has been a ruckus from the Parliament to the road over the three bills related to farmers. Union minister Harsimrat Kaur Badal has even resigned. Let us know what is the issue and why there is so much uproar about the minimum support price (MSP)?

• The Agricultural Produce Trade and Commerce (Promotion and Facilitation) Bill-2020
• Farmers (Empowerment and Protection) Agreement on Price Assurance and Agricultural Services Bill-2020
• Essential Commodities (Amendment) Bill, 2020

has been passed in Lok Sabha on Thursday 17 September. The government had issued ordinances on June 5, 2020, these three bills will replace those related ordinances. Not only the opposition, the Shiromani Akali Dal supporting the government is also opposing it. Farmer’s organizations across the country are already protesting.

What changes are  –

Through the Agricultural Produce Trade and Commerce (Promotion and Facilitation) Bill, the government has given the right to the farmers to sell and market agricultural produce in any state. Earlier farmers were able to sell it only in APMC mandis of their state. The government argues that this will give farmers a better price for their produce and will enable electronic trading of agricultural products.

During the introduction of the bill, the leaders of the opposition had said that this bill would pose a threat to the minimum support price (MSP) to the farmers. But Agriculture Minister Narendra Singh Tomar rejected this and said that the MSP will continue as before, while farmers will be able to benefit from the increase in the price of goods at the second place by selling their goods there. Tomar said that this bill is in the interest of farmers and this will give them a chance to earn more.

What is MSP (minimum support price) ?

The government fixes a minimum support price (MSP) for major crops of cereals, oilseeds, pulses, etc. across the country in order to ensure that farmers get guaranteed higher prices for their crops. If the buyer is not found, the government buys the crop from the farmer at MSP through its procurement centers. While determining MSP, many things such as cost of agricultural yield, change in prices, demand-supply, are taken into consideration.

What harm to farmers ?

Critics say that ending the monopoly of APMC, there will be no point in giving that minimum support price, which the government decides to protect the interests of farmers. Critics say that at this time there was a need to strengthen this system, but the government is proving it useless.