Analysis of the 2020 Farm Reform Bills: Gaps in MSP and their Impact on Farmers' Welfare in India

Abstract

In the present study efforts have been made to Find the gap between MSP Given by   government to farmers and MSP recommended by Swaminathan committee in the report of national commission on farmers. The NCF had submitted a total of five reports between 2004 -2006 with new formula for MSP. The secondary data on value of comprehensive cost that is cost of cultivation C2 and Current MSP of crops of both season that is kharif and rabi were collected for the period 2013-14 to 2023-24 from CACP reports and agricultural ministry reports. The collected data of cost of cultivation was converted to MSP by C2 + 50% formula and were to find gap between MSP given and MSP recommended. The study reveals that gap between MSPs is more in kharif crops as compared to rabi crops. The gap is likely to be more in  cereals and pulses crops as Government  policies supported main staple crop like paddy and wheat also cost of cultivation is less in these crops supporting the results of those data analysis. The MSP calculation and gap analysis were analyzed using excel tool. The gaps in percentage will help readers to understand the gap in farmers income. This paper will try to get the idea of policy required for enhancement of farmers income and also farmers to evolve their cultivation pattern based on historic MSP gaps.  This study compares the MSPs announced by the government with those recommended by the Swaminathan Committee, analysing their economic impact on farmers' livelihoods and suggesting policy changes.