The C2+50% formula on MSP by the Swaminathan Commission gives farmers an extra 50% of their crop cost.
New Delhi: Almost two years after the farmers from Punjab, Haryana and Western Uttar Pradesh first surrounded Delhi, the city’s borders are once again the scene of demonstrations. The farmers from the same area are back for a second round of protests, unruffling the smooth flow of city life once again. Notably, the most recent ‘Chalo Delhi’ march, however, witnesses a smaller crowd and has slightly changed demands than the past protests seen in 2020–2021. Let us understand the root cause and the major points of discussion during the Farmers Protests 2.0.
Main Demand Of Protesting Farmers
The main demand of protesting farmers this time is a legal guarantee of Minimum Support Price (MSP) for all the Kharif and Rabi crops, besides seeking a Rs 10,000 pension for farmers above 60 years of age and more. A MSP for Kharif and Rabi crops would mean that the government lays down a fixed price so that farmers get a ‘fixed’ income irrespective of the amount and quality of their crop produce.
Farmers have every right to seek ‘government shield’ but MSP for every crop is not feasible, tenable and justified, not just politically but also economically. First, talking about economic fallout, there has been a big gap between farmer demand and the government’s MSP allocation for years.
What Is Swaminathan Commission And What Did It Recommend?
Then Prime Minister Manmohan Singh constituted a commission under the chairmanship of famous agricultural scientist MS Swaminathan in November 2004 to study the problems of farmers, which was given the name of ‘National Commission on Farmers’. The committee submitted six reports to the government from December 2004 to October 2006.
What’s C2+50% Formula On MSP?
The C2+50% formula on MSP is an idea put forward by the Swaminathan Commission to give farmers an extra 50% of their crop cost, thus helping them increase their income. In the current protests, the farmers protesting are calling on authorities to reflect this formula in the MSP Guarantee Act. Notably, Congress leader Rahul Gandhi has said that if Congress wins in the upcoming 2024 elections, it will give legal status to MSP.
Status Check Of MSP And Market Value
In the fiscal year 2020, the market value of agricultural produce stood at Rs 10 lakh crore and this included all 24 crops under MSP purview. However, the total MSP procurement in that year stood at Rs 2.5 lakh crore, which is just 25 per cent of the produce under MSP.
If the government cedes to farmers demand for legislation, thereby according to its guarantee, the exchequer would stand to bleed with additional expenditure of at least Rs 10 lakh crore annually. Notably, this amount is almost equal to the central government’s allocation of Rs 11.11 lakh crore, in the interim budget this year for infrastructure development, as per areport by news agency IANS.
(With inputs from agencies)