'MSP Will Put Indian Economy In Crisis & Harm Everybody': SC Appointed Farm Laws Panel Member

Ghanwat, who is president of Shetkari Sangathan, said both the central government and the farmer leaders should think of some other way to boost farm incomes and that a law on MSP is not a solution.

PTI | File Photo

New Delhi: A Supreme Court-appointed committee member, Anil Ghanwat, on Monday said that the Indian economy will face a crisis if a law is made for guaranteeing minimum support price (MSP) for crops.

"If there is going to be a law (on MSP), we (India) will face a crisis. With the law, if the (procurement) process goes down someday, no one will be able to buy the produce as procuring it at a price lower than the MSP will be illegal and they (traders) will be put in jails for it," Mr Ghanwat told ANI.

Ghanwat, who is president of Shetkari Sangathan, said both the central government and the farmer leaders should think of some other way to boost farm incomes and that a law on MSP is not a solution.

His remarks came amid demands by protesting farmers for legislation on MSP even as they have hailed the decision for withdrawal of three farm laws.

He told ANI, that this will not only harm traders but stockists and everybody else related to it stating that the commodity market will be disturbed. He also termed the move to repeal the three farm laws as "unfortunate"

"We are not against MSP, but open-ended procurement is a problem. We require 41 lakh tonnes of grains for buffer stock but procured 110 lakh tonnes. If MSP law is made, all farmers will demand MSP for their crops and no one will be in a position to earn anything out of that," he added.

Politics & farmers

Ghanwant told ANI that even if the new laws were introduced these were not perfect, some of the flaws needed to be corrected. He said that this government had the will to bring in reforms since the earlier governments did not have the political will. 

"I hope another committee will be formed comprising of opposition leaders and farm leaders from all states and then new farm laws are discussed in the parliament and should be introduced," he added.

Ghanwant said that three farm laws was "creating a new law and order situation" while noting that the government has to run the country and do politics as well. 

"So maybe they must have thought that if the situation will remain like this, then the upcoming Uttar Pradesh election will not be easy for them and they can face losses. So to avert the damage they must have taken this step," he said.

He suggested that the farmers should diversify and produce high-value crops that would give them more returns. He noted that the Essential Commodity Act should be scrapped as it works as a weapon against farmers. As whenever the prices rise, farmers get some profits, the government intervenes and puts in stock limits. It puts an even higher interest on transportation limits. It imposes export bans. These are the weapons used to reduce the farm produce prices which is hurting the farmers, he added. 

"This (three farm laws) was an effort by this government to give some freedom to agriculture, but unfortunately, we have lost it now," he added.

The protesting farmers, while welcoming repeal of three farm laws, are seeking remunerative MSP and procurement (at C2 50 per cent level) as a legal entitlement "for all farmers, for all agricultural produce".