SC seeks Centre’s response to PIL seeking legal MSP for all notified crops

Plea seeks MSP based on Swaminathan Commission’s cost-plus-50% formula, along with debt relief and assured procurement for farmers

News Desk
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New Delhi, August 19: The Supreme Court on Tuesday sought the Centre’s response to a PIL seeking a legally enforceable Minimum Support Price (MSP) for all notified agricultural crops based on the actual cost of cultivation plus a 50 per cent profit margin, as recommended by the MS Swaminathan Commission.

A Bench headed by Chief Justice of India Surya Kant clubbed the petition with a similar matter already pending before the top court and sought responses from the Centre and other authorities.

The petition has been filed by former Lok Sabha MP V Sobhanadreeswara Rao, who has sought a statutory framework requiring that no notified agricultural produce be procured below the prescribed MSP.

The Swaminathan Commission, in its 2006 report, had recommended that farmers be paid their cost of production plus 50 per cent to ensure economic viability and meaningful returns from agriculture.

Rao has also sought a time-bound mechanism for agricultural debt relief, including a one-time waiver of crop loan dues for small and marginal farmers affected by agrarian distress. The plea seeks improved access to institutional credit to reduce farmers’ dependence on private moneylenders.

Another prayer seeks consideration of a central law modelled on the Kerala Farmers’ Debt Relief Commission Act.

The PIL also seeks statutory recognition and protection for tenant farmers, including access to crop loans, insurance and welfare schemes through suitable amendments to the Model Agricultural Land Leasing Act.

Among other measures, Rao has sought increased allocation and effective implementation of schemes relating to price support, procurement and market intervention, including PM-AASHA, the Price Support Scheme (PSS), Market Intervention Scheme (MIS) and Price Deficiency Payment Scheme (PDPS).

The petition further seeks strengthening of agricultural marketing infrastructure and greater investment in irrigation, along with time-bound completion of ongoing irrigation projects to reduce dependence on rainfall and minimise agrarian risks.

It has also sought immediate relief for distressed farmers, including a moratorium on recovery of agricultural loans in cases of crop failure and natural calamities.

The latest petition comes against the backdrop of another MSP-related matter before the Supreme Court. On April 13, the court had sought responses from the Centre, the Directorate General of Foreign Trade and the Commission for Agricultural Costs and Prices on a plea seeking greater weightage for states’ assessment of the actual cost of cultivation while fixing MSP.

The petitioners in that matter — Maharashtra farmers Prakash Gopalrao Pohare, Purushottam Gawade and Vishal Omprakash Rawat — have sought MSP at least at the weighted average cost of production, known as C2, along with assured procurement at that price.

They contended that farmers were facing severe financial distress because they were unable to sell produce even at the actual cost of production.

The farmers also cited large-scale suicides, claiming that more than 17,000 farmers had died by suicide in Maharashtra alone over the preceding five years.

They have sought effective and accessible procurement centres at the tehsil, block, village and district levels, along with a transparent and uniform mechanism for assured procurement of all crops covered under the MSP regime.

The petitioners have further sought waiver of outstanding agricultural loans and complete procurement of notified crops at MSP calculated on the basis of the actual cost of cultivation.

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