Farmers body seeks cost, plus 50% profit as MSP

Written by Press Trust of India | New Delhi | Updated: Nov 30 2009, 03:37am hrs
The Consortium of Indian Farmers Associations (CIFA) on Saturday said the government should add 50% profit into the cost of production while deciding the minimum support prices (MSPs) of farm produces.

The CACP should be made an autonomous body, directly accountable to Parliament and should follow the price fixation formula suggested by the National Farmers Commission," CIFA secretary general P Chengal Reddy said.

The National Farmers Commission, headed by noted farm scientist MS Swaminathan, had recommended that the MSP cover the cost of production plus a minimum of 50%, Reddy said. He also said there is a need for fine-tuning NREGA so that poor have access to guaranteed employment and the farm operations do not suffer due to diversion of employment creation during peak agriculture seasons.

To minimise the farmers' misery from natural calamities and pest attack, he suggested that the government launch a national insurance plan by the end of the 11th Plan.

Mechanisation of agricultu re and investment from the private sector is very essential for the growth of farm sector, Reddy added.

The CIFA is organising a two-day sixth National Farmers Convention beginning December 2, and will be attended by farmers from across the country and commodity groups.