The Centre is considering forming an expert committee to address farmers’ protests over agriculture price crashes. The committee will investigate trader manipulations causing price declines and recommend market interventions to stabilize prices and enhance farmers’ incomes. A senior government official stated that while the government seeks a balanced solution to farmers’ concerns, it does not plan to legalize the Minimum Support Price (MSP) or implement the Swaminathan committee’s C2-50% formula.
The official emphasized that the primary cause of farmers’ protests is low market prices, which could be better regulated through regular monitoring by the proposed committee. However, legalizing MSP could disrupt crop production and threaten food security, as MSP is influenced by factors like demand, global and domestic price trends, and consumer needs. Forcing sales at MSP, as attempted in Maharashtra, could lead to crops rotting without buyers, highlighting the risks of such policies.
The government’s stance aligns with recent research by NITI Aayog member Ramesh Chand and Jaspal Singh, which shows that non-MSP crop production has doubled in the past two decades compared to MSP crops. The study revealed that while MSP-covered crops saw limited growth, horticulture crops achieved around 4% annual growth without price support. This suggests that market-driven approaches might be more effective in boosting agricultural output.
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