msp issue
→ farm laws
m.s swaminathan committee
→ never accepted by govt
→ 2020
3 farm laws (introduced thru an ordinance (art. 123)
- the essential commodities amendment act
amendment of orig. essential commodities act (1955)
illegal to hoard essential commodities (because of lack of self sufficiency after independence)
in 2020: amendment: hoarding is legal (to cause an improvement in storage)
because pvt businessmen would now step in
- the farmers agreement of price assurance and farm services act
price assurance: fixed price for produce
- the farmers produce trade and commerce (promotion and facilitation) act
prev. obliged to sell in APMC (agriculture produce market committee)
now, the obligations are removed and produce can sell anywhere, to anyone (including businessmen)
→ farmers protest starts (nationwide)
APMC run by govt → govt officers and maintained by govt
but fear that APMC will be shut down (govt has assured otherwise)
no other place to sell if APMC is shut down (businessmen monopoly and price levels very shitty)
→ MSP (introduced for 22+1 crops)
22 crops ; 1 sugarcane (14 kharif ; 6 rabi ; 2 commercial)
sugarcane is referred to as FRP (fair and remunerative price)
sugarcane is bought by millowners
MSP obligation on govt by govt
FRP obligation on sugar mill owners by govt
MSP decided by CACP (commission for agricultural cost and price)
CACP: 1965
attached office of the ministry of agricultural affairs
recommends MSP to cabinet committee on economic affairs (headed by PM)
CACP: non binding
3 kinds of production crop
CACP based on
→ initially A2: based on prices incurred by farmers (flawed: labour from family not properly counted)
→ Then A2 +FL (A2 + family labour)
→ Swaminathan commission (formula) C2 +50% (comprehensive costs + rent of land + 50%)