Prime Minister Modi has implemented the recommendations of the Swaminathan Committee to increase MSP to 1.5 times the cost of production.
In fact, the amount spent on procurement at MSP went up by 85 per cent in 2014-19 compared to 2009-14. MSP has risen in the range of 40-70 per cent for all major crops in 2020-21 in comparison to 2013-14.
Even this year, procurement of paddy at MSP in Punjab has been 25 per cent more than last year and 20 per cent more than even the procurement target for this year.
Till date, over Rs 1,10,000 crore has been transferred directly to the accounts of farmers through the PM Kisan Yojana and Rs 87,000 crore paid as crop insurance to farmers against a premium of merely Rs 17,450 crore.
Despite such incontrovertible evidence and several assurances by senior leaders, including the PM, fear and anxiety are being spread among our brothers and sisters that MSP will go and mandis will be destroyed. Nothing could be farther from the truth.
In 1950, the Indian agriculture sector contributed around 52 per cent to the nation’s gross domestic product (GDP), while employing nearly 70 per cent of our entire population.
As of 2019, the sector still employed nearly 42 per cent of our total population but contributed only 16 per cent to the GDP, while experiencing a year-on-year growth rate of just 2 per cent.
Agriculture and Rural Development showed that 52.5% of all agricultural households were indebted with average debt of $1,470 (around Rs 1.08 lakh). This happens while 30% of our agriculture production continues to get wasted due to a lack of proper cold chain infrastructure.
A quintessentially inefficient supply chain.

As a result, consumers do not have a choice of products, wastage is high and prices are highly volatile. At the same time, the farmer is subjected to vagaries of climate change, markets, middlemen and lack of essential infrastructure.
Para 5.13 of committee report had mentioned:

Market for agricultural produce must be immediately freed of all sorts of restrictions on movement, trading, stocking, finance, exports etc. No monopoly, including of APMCs or corporate licensees, should be allowed to restrict market.
The concept of farmers’ markets, where they can freely sell to the consumers directly, must be promoted.

The use of the Essential Commodities Act should be made only in times of emergency and it must be decided in consultation with state governments.
Some Indian states have also adopted and implemented these reforms on their own over the years — for example, Bihar, where the agriculture growth average is 6 per cent compared to the national average of just 2 per cent.
The question then arises, why is there so much opposition?

Fundamental and transformational reforms are by nature disruptive. Beneficiaries of the existing inefficient systems have a vested interest in maintaining the status quo, so a pushback from them is natural.
The resistance put up by the ‘Bombay Club’ against the fundamental economic reforms introduced to unshackle the Indian economy in 1991, is an example.
We must not allow misinformation campaigns to derail these transformative reforms which intend to put more money in the farmers’ pockets.
Mark Twain said a lie can travel half way around the world while the truth is putting on its shoes. The truth finally does, however, triumph. The cobwebs of lies and misinformation are now being removed and the truth is becoming apparent to our hard-working farmers.
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