Farm experts raise issue of higher MSP

Experts highlighted the importance of a timely decision in declaring the MSP higher than the cost of production by 50%, a BJP's poll promise

Finance Minister Arun Jaitley on Thursday started his pre-Budget consultations with farm sector experts, assuring them of government resolve to boost the sector despite a resource crunch. The experts highlighted the importance of a timely decision in declaring the minimum support price (MSP) higher than the cost of production by 50 per cent, a Bharatiya Janata Party's poll promise.

Chengal Reddy of the Consortium of Indian Farmers Association said the farm sector representatives asked for better coordination between the Commission of Agricultural Costs and Prices which declares MSP for 23 crops, and procurement in states. "The BJP manifesto on agriculture is very comprehensive and it calls for greater investment," said agriculture scientist M S Swaminathan.
 

The need for a stable export policy on wheat, rice, sugar and cotton was also raised. The agriculture experts also highlighted the need for a mechanism for prior information on such a policy.

Jaitley enquired about investment in agriculture to which Reddy mooted the issue of bonds to fund about 300 incomplete irrigation projects and setting up of a National Water Authority and River Valley Authorities.

Emphasising the need to conserve soil, water and biodiversity in the backdrop of climate change, Swaminathan recommended mandatory harvesting of rainwater with the support of the Mahatma Gandhi National Rural Employment Guarantee Act.

Swaminathan recommended setting up of soil-monitoring centres with modern equipment in every block and conserving indigenous animal breeds like cattle and buffalo. He also suggested a special fund to help develop gender-specific skills.

He suggested a long-term agri-trade policy, an efficient procurement policy and boosting farm income by fixing higher support prices to encourage the farming community to continue in this profession. He also sought effective backward linkages to check food inflation.

Ramesh Chand, Director at the National Centre for Agricultural Economics and Policy Research, a body under the ministry of agriculture, emphasised the urgent need to bring market reforms in the farm sector.

Later in the day, Jaitley met social sector representatives.

CUTS International secretary general Pradeep S Mehta said participants asked the finance minister to focus on outcome of the schemes, particularly in the primary education. While money is spent on buildings and teachers, the efficacy of education imparted is not that much focussed on, they rued.

Though finance ministry has a rule that expenditure cannot be bunched towards the end of the year, social sector experts said the rule is often not adhered to by departments and they give funds to institutions later in the year.

An expert wanted an exemption to products sold by institutions like Helpage from service tax. He said now the tax is imposed even on greeting cards sold by Helpage to raise funds.

Mehta wanted a change in guidelines of corporate social responsibility to include socio economic policy research in it.

Cuts also pushed for reforms in competition and transparency to contrain inflation and achieve high growth.

Jaitley will on Friday meet trade union and industry representatives to seek their inputs for the Budget.