Ahead of Union Budget, Congress demands legal guarantee for MSP

Congress demands legal guarantee for MSP, Swaminathan formula, and farm loan waiver monitoring ahead of Union Budget.

A day before the presentation of the Union budget, the Congress on Monday said the Centre must make three important announcements of making Minimum Support Price (MSP) a legal guarantee, fix MSP on the basis of the Swaminathan formula and establish a permanent commission to monitor the implementation of farm loan waivers.

Congress general secretary in-charge Jairam Ramesh said that of all the "failures" of the central government, the "incompetence and ill-will" of the Ministry of Agriculture and Farmers' Welfare is the most damaging.

"While the UPA had raised the MSP of wheat by 119% and that of rice by 134%, the Modi government has raised it by 47% and 50% respectively. This is not at all enough to keep up with inflation and the rising prices of agricultural inputs," Mr. Ramesh said in a statement.

He pointed out that farmers' debt has increased tremendously.

According to the National Sample Survey Office (NSSO), outstanding loans have increased by 58 per cent since 2013, he said.

"More than half of the farmers are debt-ridden. Since 2014, we have seen more than 1 lakh farmers die by suicide," Ramesh said.

"The Central Government needs to make three key announcements for farm welfare in the upcoming Budget: Raise MSP for 22 crops that come under MSP, in line with the C2+50% formula as recommended by the Swaminathan Commission," he said.