Delay in fixing paddy MSP will lead to food crises: CACP

Any delay in fixing the minimum support prices (MSP) for paddy and other kharif crops will only lead to a food crisis in the country, according to T Haque, former chairman Commission for Agricultural Costs and Prices (CACP).

Criticising the government?s decision to refer the CACP report to the Prime Minister?s Economic Advisory Council, (EAC), Haque said, ?It is a ?wrong action? and the intention of the government does not seem to be good.? He felt, referring the CACP report to EAC, the purpose of MSP is lost, because the farmers are not able to allocate their land and other resources for not having advance price signal.

Last week the Union government announced an interim paddy MSP of Rs 850 per quintal, and sort the intervention of the PM?s EAC for a final decision on the MSP. It also refrained from announcing any MSP for other crops grown during the kharif sowing season saying that their current market price was higher than that recommended by CACP, which was Rs 1,000 per quintal.

?I have no personal agenda or any political motives. I like to educate people right from the Prime Minster to the farmer about the need of increase in the MSPs of all agriculture commodities,? Haque said.

The former CACP chairman asked the Andhra Pradesh chief minister Rajasekhara Reddy to use his good offices and apply pressure on the Prime Minister Manmohan Singh to adopt his recommendations. ?We (CACP) have submitted the recommendations on MSPs of kharif crops in the first week of February 2008,? Haque said.

Also, Haque considered government?s decision on adhoc increase in paddy MSP to Rs 850 per quintal, ignoring the CACP recommendation, to be faulty. ?In fact, even Rs 1,000 per quintal is not a fair price. Eventually, we have to move towards Swaminathan?s formula for fixing MSP for agricultural commodities,? Haque opined.

Alleging that the Union government is taking up anti-farmer policies such as this, Haque said that the rice riots, which occurred in other countries, would soon hit India. He wanted the government to open its eyes before and enhance the MSPs of all commodities as suggested in the CACP report.

Giving reasons for increasing the MSP for paddy and other crops, Haque said that the CACP, for the first time, has included an element of profit in the MSP of all crops. ?This measure would encourage farmers to produce more food grains thus, improving the country?s food security situation,? he said. He further argued that the increasing prices have nothing to do with the increased MSPs of crops.