23-December-2024-Editorial

RECOMMENDATIONS OF THE PARLIAMENTARY STANDING COMMITTEE ON FARMERS’ WELFARE

The Parliamentary Standing Committee (PSC) on Agriculture, Animal Husbandry, and Food Processing recently presented its inaugural report for the 18th Lok Sabha. This report focused on the Ministry of Agriculture and Farmers Welfare’s demands for grants for 2024-25.

It outlined several recommendations aimed at improving the welfare of farmers and enhancing the agricultural sector.

Key Recommendations of the PSC Report

Legal Assurance for MSP

• Suggested enacting a legal framework to guarantee the Minimum Support Price (MSP) for crops.
• Recommended creating a roadmap for implementing legal MSP, including financial planning by the central government.
• Proposed presenting a post-harvest report in Parliament detailing the number of farmers selling at MSP and the gap between MSP and market prices.

Paddy Waste Management

• Advocated for compensating farmers for managing and disposing of crop residue to address stubble burning issues.
• Considered Punjab’s suggestion of a Rs 2,000 per acre bonus, with shared costs between the state and central governments.

Enhancement of PM-KISAN

• Recommended doubling the annual assistance under the PM-KISAN scheme from Rs 6,000 to Rs 12,000.
• Suggested extending the scheme’s benefits to tenant farmers and agricultural laborers.

Debt Relief Measures

• Proposed introducing a debt waiver scheme for farmers and agricultural workers to reduce distress and prevent suicides.
• Emphasized the need to monitor rising rural debts and dependence on loans.

Improving Budgetary Allocation

• Highlighted the declining percentage of agriculture’s share in the central budget, from 3.53% in 2020-21 to 2.54% in 2024-25, despite increased allocations in recent years.

Universal Crop Insurance

• Recommended mandatory crop insurance for small farmers with holdings up to 2 acres, modeled on the PM-JAY health insurance scheme.

Support for Agricultural Workers

• Proposed establishing a National Commission for Minimum Living Wages for agricultural laborers.
• Suggested renaming the Department of Agriculture and Farmers Welfare to include “Farm Labourers” to emphasize their welfare.

Significance of PSC’s Recommendations

Economic Stability for Farmers

• A legally guaranteed MSP would reduce financial uncertainty, alleviate debt, and lower farmer suicides.
• It would ensure consistent income and mitigate market price fluctuations.

Food Security

• A legal MSP would contribute to national food security by ensuring stable grain prices and supporting public distribution systems.

Environmental Benefits

• Addressing stubble burning through compensation and equipment subsidies would improve air quality and reduce pollution in northern India.

Inclusivity in Agricultural Policies

• Expanding welfare programs to include tenant farmers and laborers ensures broader support for the agricultural community.
• Renaming the agriculture department highlights the importance of all stakeholders in the sector.

Challenges Facing Farmers

Unmet MSP Promises

• Farmers have long demanded a statutory MSP at 1.5 times the comprehensive cost of production (C2+50%), as recommended by the Swaminathan Commission.
• The absence of guaranteed MSPs leaves farmers financially vulnerable.

Rising Input Costs

• Fertilizers, seeds, fuel, and electricity costs are increasing, reducing profitability for farmers.

Growing Debt Burden

• Rural families’ reliance on loans has risen, with NABARD’s report showing an increase from 47.4% in 2016-17 to 52% in 2021-22.
• Household expenses outpacing income growth further strain rural economies.

Decline in Agricultural Growth

• Agricultural growth for 2023-24 declined to 1.4%, the lowest in seven years, compared to an average of 4.18% in preceding years.

Land Acquisition Issues

• Concerns persist over land acquisition policies favoring corporates, often bypassing the 2013 Land Acquisition Act’s provisions for fair compensation.
• Tribal lands are frequently acquired without proper compensation for mining and industrial purposes.

Insufficient Public Investment

• Reduced spending on irrigation and power projects hampers the sector’s progress.
• The PMFBY crop insurance scheme has been criticized for benefiting insurers more than farmers.

Underfunded MGNREGA

• Insufficient funds for MGNREGA have led to reduced workdays, affecting farmers during non-agricultural seasons.

Way Forward

Implementing Statutory MSP

• Enact a statutory MSP at C2+50% as per the Swaminathan Commission’s recommendations.

Introducing Comprehensive Debt Relief

• Implement a one-time loan waiver to alleviate financial stress and support agricultural reinvestment.

Revamping Crop Insurance

• Develop an inclusive crop insurance scheme tailored to the challenges of climate change and natural calamities.

Strengthening MGNREGA

• Increase funding for MGNREGA, extend workdays to 200 annually, and raise daily wages to Rs 600.

Enhancing Agricultural Policies

• Prioritize policies that safeguard farmer welfare over corporate interests.
• Address the welfare of farm workers and rural communities in policy revisions.

Progressive Taxation

• Revise income tax structures to mobilize resources for comprehensive agrarian reforms.

Conclusion

The PSC’s recommendations aim to address the pressing challenges in agriculture, improve the financial stability of farmers, and ensure sustainable growth in the sector. Implementing these measures would not only enhance farmer welfare but also contribute to the nation’s food security and environmental sustainability.