New Delhi, April 23
Accusing the Central Government of not giving a “fair deal” to farmers, a parliamentary committee has rapped the government on the manner it fixes the minimum support price for agricultural commodities, as it does not take the real production and labour cost into account.

“The MSP, which is instrumental in deciding the fate of the crop and the growers, is not being fixed keeping in view the real production cost and labour involved ,” said the parliamentary standing committee report on agriculture tabled in the Lok Sabha this week.

The report has been tabled at a time when the government has announced the MSP for the kharif crop 2005-06, where it has announced Rs 10 hike in MSP for paddy and no increase in the case of cotton.

Several farmers’ body and political parties, including the Shiromani Akali Dal, have criticised the MSP announced by the government, as there is no change in the procurement prices in real term.

The committee headed by Ram Gopal Yadav observed that the government should ensure that the MSP was fixed slightly higher than the cost price recommended by the state governments which in turn is based on the actual experience of agriculturalists as well as the considered views of universities and experts so that the farming community, which gives employment to 60 per cent of the people in the country “gets a fair deal.”

It said adequate representation should be given in the Commission on Agricultural Cost and Prices (CACP) to the representatives of farmers in order to have first hand information about the cost of production of the agricultural produce while fixing the MSP.

Mr Yadav said the committee has recommended that more agricultural commodities, particularly those recommended by the state governments, should be brought within the fold of MSP. He said the committee desired that the procurement centres should start functioning by the time crop is ready.

The Cabinet Committee on Economic Affairs on Wednesday announced prices of kharif crop for 2005-06, which includes Rs 10 hike in MSP for paddy and no increase in the case of cotton.

The common variety of paddy would have an MSP of Rs 570 as compared to Rs 560 in 2004-05. In the case of paddy grade A, the MSP for 2005-06 has been fixed at Rs 600 as compared to Rs 590 last fiscal.