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Agri minister picks holes in Centre’s MSP formula

Updated: February 25th, 2021, 06:00 IST
in Metro
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Agriculture Minister Arun Kumar Sahoo. (PC: @dr_arunsahoo)

Agriculture Minister Arun Kumar Sahoo. (PC: @dr_arunsahoo)

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Bhubaneswar: Agriculture and Farmers’ Empowerment Minister Arun Kumar Sahoo said the Centre should implement the recommendations of the MS Swaminathan Committee while fixing the minimum support price (MSP) for several agricultural produce.

During the question hour in the Assembly, Wednesday, Sahoo said the Commission for Agricultural Costs and Prices (CACP) at the Centre is fixing the MSP for various agricultural produce including paddy in the country. The Commission fixes the MSP after consulting various states and considering the expenditure on the use of labour, seed, irrigation facility, fertilizer, pesticides, interest on the invested money, etc, he said.

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However, the CACP is fixing the MSP for paddy taking the national average cost into consideration. As a result, states like Odisha are bearing losses, the minister said.

“Instead of fixing the MSP on the basis of national average, the Centre should fix it state wise so that farmers can be benefited,” he opined.

As per the state government’s estimation, the production cost of paddy is estimated at Rs 2,344 per quintal. With the 25 per cent addition (as profit), the price will be Rs 2,930 per quintal. Accordingly, the state Assembly has passed a resolution unanimously to put pressure on the Centre for fixing the MSP at Rs 2,930.

The state government had repeatedly raised the demand before the Centre writing letters five times. However, the Centre is yet to take any action, Sahoo further said.

Recently, a proposal was moved in the Cabinet and subsequently sent to the Centre for fixing the MSP accordingly, the minister added.

Tags: Arun Kumar SahooMS Swaminathan CommitteeMSP
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