Maharashtra chief minister Devendra Fadnavis’s plan to prohibit purchase of farm produce below state-set prices is legally not feasible and may distort the market, farm sector experts, activists, government officials and traders of agriculture commodities said.
Last week, Fadnavis told a review meeting that the state government will bring in a law that makes purchase of farm produce below the government-determined minimum support price (MSP) an offence. Fadnavis insisted the legislation would protect farmers but not many share the optimism.
“A state has no powers to make such legislation because MSP is fixed by the Centre. Making MSP mandatory amounts to distorting market when prices are increasingly being determined internationally. MSP itself is a misnomer as not even the government buys the bulk of farm produce except wheat and rice which are part of the public distribution system (PDS),” said a farm sector expert, on condition of anonymity.
Vidarbha-based farm activist and tur cultivator Vijay Jawandhiya said the MSP law was “just an attempt to exploit the sentiment against traders”. “On the one hand, Prime Minister Narendra Modi is talking of a single national market for farmers. And here, Fadnavis is talking about a law to dictate price of a major commodity in a particular state. MSP is guaranteed by the Centre and hence, it is the Centre’s duty to ensure that farm produce is bought at MSP. States only have to help out in procurement,” Jawandhiya said.
Last week, Fadnavis told a review meeting that the state government will bring in a law that makes purchase of farm produce below the government-determined minimum support price (MSP) an offence. Fadnavis insisted the legislation would protect farmers but not many share the optimism.
“A state has no powers to make such legislation because MSP is fixed by the Centre. Making MSP mandatory amounts to distorting market when prices are increasingly being determined internationally. MSP itself is a misnomer as not even the government buys the bulk of farm produce except wheat and rice which are part of the public distribution system (PDS),” said a farm sector expert, on condition of anonymity.
Vidarbha-based farm activist and tur cultivator Vijay Jawandhiya said the MSP law was “just an attempt to exploit the sentiment against traders”. “On the one hand, Prime Minister Narendra Modi is talking of a single national market for farmers. And here, Fadnavis is talking about a law to dictate price of a major commodity in a particular state. MSP is guaranteed by the Centre and hence, it is the Centre’s duty to ensure that farm produce is bought at MSP. States only have to help out in procurement,” Jawandhiya said.