NEW DELHI: A parliamentary panel has proposed the introduction of a minimum support price (MSP) for all organic crops, in addition to the existing practice of declaring MSP for traditional crops.
The standing committee on agriculture, in its report submitted to the Parliament last week, argued that the move would incentivise farmers to transition to organic farming, despite the challenges of lower yields in the initial years of conversion.
“Organic farming transition will help farmers move from chemical-intensive farming to natural farming on a large-scale,” said the 30-member panel, headed by Congress Lok Sabha MP Charanjit Singh Channi.
Referring to the suggestion of MSP for organic produce, the panel in its previous report in December last year recommended a legal guarantee for the procurement of crops at MSP, however, made it clear that the new suggestion should not undermine the broader MSP demand based on the Swaminathan (Committee) formula.
“Instead, the legal MSP framework should be expanded to include organic produce,” it said.
The panel, having opposition and ruling parties’ MPs from both Lok Sabha and Rajya Sabha as its members, believes that MSP for organic produce should be set higher than that for conventional crops to compensate for the drop in yield and the costs associated with the shift to organic farming.
It said farmers will only shift towards organic farming and diversified agriculture if they are convinced that the shift will allow for better economic prospects and benefits than the present form of agriculture.
In order to determine an appropriate MSP for organic produce, the panel suggested conducting extensive large-scale research studies, saying it would examine the costs associated with transitioning to organic farming and ensure that the MSP adequately reflects the financial support required for this shift, particularly in terms of decreased yields per hectare and increased quality of the produce.
Noting the shortcomings of the current support price mechanism for 23 traditional crops, which primarily considers production costs, the panel said the MSP for organic produce should take into consideration “not just production costs, but also the support necessary to enable farmers to successfully make the transition” from chemical-intensive farming to organic farming.
In an effort to give fillip to organic farming, it also strongly recommended a “separate budget” and “sufficient funding” to subsidise organic farming for its effective promotion for a larger goal of making available healthier foods and tackling the menace of soil and water contamination.