Consider giving MSP legal status: HC to Punjab, Centre

CHANDIGARH:THE Punjab and Haryana High Court asked the Centre and the Punjab government to consider providing legal status to the Minimum Support Price (MSP) by bringing suitable legislation. MSP is the price at which the government purchases crops from farmers.

The direction is among a slew of measures the court has suggested to help the farmers in distress.

The court directed Punjab to introduce an app in consultation with the technology department and private players to have an up to date data on the status of crops grown in the state.

The court said Punjab should also consider formulating a scheme for the payment of reasonable compensation or family pension to the families of farmers who have committed suicide because of distress.

It issued the directions while considering the Punjab State Cooperative Agricultural Development Bank’s move to discontinue a pension scheme citing lack of funds due to loan waivers.

The court suggested weather insurance for crops in consultation with the national insurance companies.

It asked the Reserve Bank of India to consider evolving a mechanism in consultation with the banks, the state government and other stakeholders about the manner in which the agricultural loans are to be sanctioned, their recovery and also waiver in the eventuality of suicides.

The court directed wide publicity to the MSP after fixing it at the time of sowing to boost the income of agriculturists. It asked the government to ensure that regulations of Warehousing (Development and Regulation) Act are implemented to enable farmers to store their produce and to prevent them from selling it under distress.

The court asked banks to ensure that farmers insure their crops to safeguard them from the vagaries of weather and unforeseen circumstances, including droughts, floods, and failure of monsoon.

It observed that MSP should be at least three times above the average cost of production.