Ms swaminathan recommendations

Subject: Economy

Section: Agri

Context:

Farmers demanding legal guarantee for MSP have invoked recommendations of the National Commission on Farmers, which said MSP should be ‘at least 50% more than the weighted average cost of production’.

More on news:

On November 18, 2004, the Ministry of Agriculture constituted a National Commission on Farmers (NCF) under Prof Swaminathan.
The 10-point terms of reference of the commission, which reflected the Common Minimum Programme of the Congress-led UPA government, included suggesting a
- “comprehensive medium-term strategy for food and nutrition security”, and
- ways of “enhancing productivity, profitability, and sustainability of the major farming systems” in the country.

About MS Swaminathan Recommendations:

Minimum Support Price:

The NCF had recommended that the MSP should be at least 50 per cent more than the weighted average cost of production.
This was also known as the C2+50 percent formula, which includes the input cost of capital and the rent on the land, to give the farmers 50 per cent of the returns.

Agriculture in Concurrent List:

One of the key findings of the panel was that agrarian crisis arising from incomplete land reforms, quantity and quality of water, tech fatigue was leading to farmers’ suicides. In addition, adverse meteorological factors were a problem too.
To this extent, the NCF had called for adding ‘agriculture’ in the Concurrent List of the country’s Constitution.

Corporatisation of Farms lands:

The commission also dealt with the problems around farmers and land reforms.
The panel suggested that diversion of ‘prime’ agricultural land and forest to the corporate sector for non-agricultural purposes should not be allowed.
It also recommended setting up of a mechanism which would help regulate the sale of agricultural land, based on a few conditions.

Irrigation:

On the irrigation front, the commission called for reforms which would help farmers have sustained and equitable access to water.
It further recommended increasing investment in the irrigation sector under the now defunct five year plan.

Productivity of Agriculture Sector:

To enhance the productivity in India’s agriculture sector, the NCF recommended increasing investment in agriculture-related infrastructure.
It also suggested promoting conservation farming.
This would help farmers conserve and improve soil health, among other benefits.

Credit Availability:

Improving credit availability for the farmers is an issue the commission touched upon.
Among the multiple suggestions, it recommended reduction in the rate of crop loans to 4 percent ‘simple’, with government support.
It further suggested issuing Kisan Credit Cards to female farmers.

Insurance:

On the insurance front, the NCF recommended the creation of a Rural Insurance Development Fund, which would help fund the development work for spreading rural insurance.