Differing perceptions of the states on fixing the minimum support price (MSP) for kharif crops have led to the UPA government’s ambitious agriculture price policy getting stalled.
NEW DELHI: Differing perceptions of the states on fixing the minimum support price (MSP) for kharif crops have led to the UPA government’s ambitious agriculture price policy getting stalled. As a stopgap arrangement, the Centre has increased the MSP for common paddy from Rs745 to Rs850.
In the face of the stand taken by the states against the recommendations of the Commission for Agriculture Cost and Prices (CACP) to fix the MSP at Rs1,000 per quintal for common paddy and Rs1,500 for a special variety, the cabinet committee on economic affairs has referred the matter to the prime minister’s economic advisory council, finance minister P Chidambaram said.
An oblique reference by him to the NDA-BJP-ruled states suggesting a lower MSP for common paddy against the CACP recommendation of Rs1,000 per quintal has led to the issue getting embroiled in a political controversy.
While Chidambaram stood his ground and refused to read any political meaning in it, the BJP charged him with not stating facts. “It is rubbish. The state governments have no role in fixing the MSP as it is the sole prerogative of the Centre,” BJP spokesperson Prakash Jawadekar said.
Quoting from official papers, Chidambaram said Orissa suggested Rs850, Himachal Rs645 and Chhattisgarh Rs745. Goa was the only Congress-ruled state to have recommended less than Rs1,000, Rs 900.
On the other side of the political divide, the Left-ruled states of West Bengal and Kerala and Tamil Nadu preferred not to give any view on the matter, so did the Congress-ruled Maharashtra. Andhra demanded a higher MSP of Rs1,300.
Gauging the sensitivity of the issue and the serious political ramifications it could have, Jawadekar sought refuge in the CACP’s procedure for fixing MSP. “The states only provide inputs to the panel in the form of the cost of production at their respective ends.
They cannot recommend MSP to the CACP,” he said.
Refusing to hazard a guess as to when the agriculture pricing policy will be declared, Chidambaram said the economic advisory council will examine all aspects of the CACP report in the light of the recommendations made by the states.
a_anil@dnaindia.net
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