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MS Swaminathan Report

Context

Farmers have been advocating for MSP implementation aligned with the recommendation of the MS Swaminathan Report.

What is the Swaminathan Report?

  • The National Commission on Farmers (NCF), chaired by Professor M S Swaminathan, was established in 2004.
  • It produced five reports between 2004 and 2006 to improve the productivity, profitability, and sustainability of farming in India.
  • These reports are collectively known as the Swaminathan Report.

Key Recommendations of the Swaminathan Report

  • Food and Nutrition Security: To develop strategies to ensure food and nutrition security across the country.
  • Farming Productivity and Sustainability: To implement reforms to enhance the productivity and sustainability of farming systems.
  • Rural Credit Flow: To increase the availability of rural credit to support farmers.
  • Land Reforms: To address land ownership inequality by distributing surplus and wastelands.
  • Irrigation: To improve water distribution and increase rainwater harvesting to support rain-fed agriculture, which constitutes 60% of the gross cropped area.
  • MSP: The NCF had recommended that the MSP should be at least 50 per cent more than the weighted average cost of production. This was also known as the C2+50 per cent formula, which includes the input cost of capital and the rent on the land, to give the farmers 50 per cent of the returns.

Fact Box: Minimum Support Price (MSP)

  • MSP is the lowest price set by the government for purchasing crops from farmers. The government declares these rates each season to guarantee fair prices for farmers, promoting increased investment and production.
  • Crops Covered:
    • Kharif crops such as Paddy, Jowar, Bajra, Ragi, Maize, Arhar, Moong, Urad, Cotton, Groundnut, Sunflower Seed, Soybean, and Sesamum.
    • Rabi crops such as Wheat, Barley, Gram, Masur, Rapeseeds & Mustard, Safflower, and Toria.
    • Additionally, MSP is announced for Copra, De-husked Coconut, Jute, and Fair Remunerative Prices are declared for Sugarcane.
  • The Commission for Agricultural Costs & Prices (CACP), an attached office of the union agricultural ministry, suggests MSPs for specific crops.
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