The Punjab government has made a strong case to the Centre demanding immediate implementation of the Swaminathan Committee?s recommendations to increase minimum support price (MSP) for agricultural products by taking into account the cost of production.
In a letter to Prime Minister Manmohan Singh, chief minister Parkash Singh Badal has observed that the Centre should ??accept and implement the recommendations of the noted farm economist, Dr MS Swaminathan, under which the MSP should be equal to the cost of production plus 50 %??. Interestingly, Badal?s letter to the Prime Minister, dated December 19, 2007, comes days after Telugu Desam Party president N Chandrababu Naidu, too, demanded immediate implementation of the Swaminathan panel?s recommendation on MSP.
The letter comes as a surprise as on the day the recommendations of the Swaminathan panel on agriculture and allied sector to use farm subsidies for technology transfer and development of farm resources was released, it had been opposed by farmer organisations.
In fact, farmers? bodies had criticised the recommendations saying that some of the subsidies, like free electricity for groundwater use and canal irrigation, could adversely affect natural resources and the financial health of the states. Former director, seed certification, GS Virk, said 56% of the increase in food production registered in the post-Green Revolution period till 1985 came from less than 15% of the land area under food crops. Such a skewed production concentration had totally degraded the soil and natural resources.
In fact, the Green Revolution belt absorbed a major part of the country?s financial outlay, famishing agriculture in other areas. A study by Punjab Agriculture University, Ludhiana, shows that it takes 300 units of inputs to produce 100 units of food under the Green Revolution technology whereas a conventional polyculture system would take only five units to produce the same.
Badal wants the Centre to link the MSP for farm commodities with the price index and has sought more funds from the Centre under the Accelerated Irrigation Benefit Programme as well as financial assistance for combating the adverse impact of global warming and ecological degradation on agriculture. He said all crops, other than wheat and rice, where MSP was fixed by the Centre, should be effectively procured. Also, a price stabilisation fund should be created at the national level for crops prone to heavy price fluctuation.
Badal?s letter says ??the people engaged in agriculture activities be categorized as skilled workers.?? The chief minister also made a case for the creation of an agriculture development fund, which can be used for developing infrastructure, improve marketing and rejuvenation of irrigation network.