Swaminathan Panel's MSP Formula: Congress Poll Promise Was Once A 'Counter Productive' Idea For Party

Congress leader Rahul Gandhi on Tuesday said that if his party is voted to power, it will give a legal guarantee of MSP to every farmer as per the Swaminathan Commission.

Farmers gather near the Titoli village on Rohtak-Jind Road for their 'Delhi Chalo' march in Rohtak. ( Image Source :PTI )

The farmers’ protests entered its second day on Wednesday demanding a series of reforms including the Minimum Support Price (MSP) guarantee and the implementation of the Swaminathan Committee report.

The Samyukta Kisan Morcha (Non-Political) and the Kisan Mazdoor Morcha are leading the ‘Delhi Chalo agitation’ to put pressure on the BJP-led Centre for their demands.

The protesting farmers, mostly from Punjab, Haryana and western Uttar Pradesh, are demanding a law ensuring an MSP for all crops, based on the Swaminathan Commission recommendations, along with a complete debt waiver and a pension scheme for farmers and farm labourers.

Here is all you need to know about the Swaminathan Committee and their recommendations:

What Is Swaminathan Commission?

In November 2004, the central government formed the National Commission on Farmers (NCF), with MS Swaminathan, a renowned agriculturist who was recently awarded the Bharat Ratna, as its chairman.

The Swaminathan Commission submitted five reports through the period between December 2004 and October 2006. The committee's suggestions included fast and inclusive growth for farmers.

The reports focused on the causes of farmer distress and the reason behind the rise in farmer suicides and suggested ways to enhance the productivity, profitability, and sustainability of the farming sector in India.  

The final report is considered the most significant as it contains suggestions for the agriculture sector as a whole.

What Were Swaminathan Report's Recommendations?

Based on the draft of the committee report, the government approved the National Policy for Farmers 2007 to improve the economic conditions of farmers and improve their net income.

The committee recommended that the government should raise the MSP to at least 50 per cent more than the weighted average cost of production, which was famously known as the C2+50 per cent formula.

The C2 in the formula included the input cost of capital and the rent on the land, which would give the farmers 50 per cent of the returns. The aim of the committee was to frame suggestions to make MSP more effective and transparent.

The commission also suggested the need for assured access to and control over basic resources of farming. These include land, water, fertilizers and pesticides, credit and crop insurance. Knowledge of farming technology and markets is also key. The NCF also recommended that "Agriculture" be inserted in the Concurrent List of the Constitution.

Modi Govt’s Stand

The Narendra Modi-led central government in 2019, after repealing the farm laws, said it accepted 200 out of the 201 recommendations made by the commission, including the demand on MSP.

Moreover, the Minister of Agriculture and Farmers Welfare informed the Rajya Sabha last December that the Government had formed an MSP Committee in July 2022, which consists of farmers’ representatives, the Central Government, State Governments, Agricultural Economists, and Scientists.

What the UPA Govt Did?

After the Swaminathan Committee made its recommendations in multiple reports till 2006, the Congress government, then under Manmohan Singh, rejected the MSP formula of the commission in 2010 citing ‘counter productivity’.

This was the UPA Government’s response to a question whether the govt at the time had accepted recommendations of Swaminathan Commission regarding MSP pic.twitter.com/3ag8uD4wJU

— ANI (@ANI) February 14, 2024

KV Thomas, the Minister of State for Agriculture in 2010, had told the Rajya Sabha that the recommendation was not accepted because "MSP is recommended by the Commission for Agricultural Costs and Prices (CACP) based on objective criteria and considering a variety of relevant factors. Hence, prescribing an increase of at least 50% on cost may distort the market. A mechanical linkage between MSP and the cost of production may be counter-productive in some cases."

However, in a fresh turn of events, Congress leader Rahul Gandhi on Tuesday said that if his party is voted to power, it will give a legal guarantee of MSP to every farmer as per the Swaminathan Commission.

"Farmer brothers, today is a historic day! Congress has decided to give a legal guarantee of MSP to every farmer on crops as per the Swaminathan Commission. This step will change the lives of 15 crore farmer families by ensuring their prosperity. This is the first guarantee of Congress on the path of justice," Rahul Gandhi posted on X.