Page 19 - NIS English December16-31
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unpredictability from the
farmer to the sponsor
l It will reduce cost of
marketing and improve
income of farmers
l Effective dispute resolution
mechanism has been
provided for with clear
timelines for redressal
l Impetus to research and new
technology in the agriculture
sector
It will promote barrier-free inter-state MSP INCREASED CONSIDERABLY
and intra-state trade and commerce DURING 2014-2020
outside the physical premises of markets
notified under State Agricultural Produce l On recommendations of the National
Commission of Farmers, headed by M
Marketing Legislation S Swaminathan, the MSP for several
agricultural products was enhanced by 1.5
MYTHS: UNDER CONTRACT FARMING, FARMERS times of the production cost incurred by the
WILL BE UNDER PRESSURE AND THEY WILL NOT farmers
BE ABLE TO DETERMINE PRICES l On paddy, the Government hiked MSP
by 2.4 times in the last five years. Actual
l The new system will be a problem for farmers payments made to farmers on paddy were
l In case of dispute, big companies will be at a whopping Rs 4.95 Lakh Crore as against
an advantage Rs 2.06 Lakh Crore in the previous five-
year period
FACTS: THE FARMER WILL HAVE FULL POWER l On pulses, the increase in the MSP was
IN THE CONTRACT TO FIX A SALE PRICE OF the maximum at 75 times leading to a
HIS CHOICE FOR THE PRODUCE. THEY WILL payment of Rs 49,000 Crore in last five
RECEIVE PAYMENT WITHIN THREE DAYS years as against a meagre Rs 645 Crore
made in 2009-14
l The purchasing consumer will pick up the l On wheat, MSP payment to farmers
produce directly from the farm increased by 1.77 times during the last five
l In case of any dispute, there will be no need years at Rs 2.97 Lakh Crore as against Rs
to go to court repeatedly. There will be local 1.68 Lakh Crore in 2009-14
dispute redressal mechanism l On oil seeds and copra, the MSP witnessed
l It prohibits the sale, lease or mortgage of an increase of ten times in five years. On
farmers' land both these products, the actual MSP pay
l Farmers can withdraw from these contracts at out was Rs 25,000 Crore as against Rs
2,460 Crore given in 2009-14
any time without any penalties if they have not l The Government agencies have made total
availed an advance amount from the contracting procurement of foodgrains totalling 382
parties Lakh tonnes during Rabi season of 2020
l The farming contract was limited to specific which is an all-time record in itself
products and confined to particular timeframes
New India Samachar 17
