Batting for fixation of Minimum Support Price (MSP) of crops as per Swaminathan formula, the Punjab Chief Minister Mr. Parkash Singh Badal today impressed upon the Union Agriculture Minister Radha Mohan Singh to continue the MSP regime of procurement for providing food and nutritional security to the country. The Chief Minister, who called on Mr. Radha Mohan Singh, at his office here at Krishi Bhawan pleaded that for revival of agriculture sector, which has now turned to be non profitable venture due to high input costs and low returns resulting in mounting farmers' debt and suicides, the continuation of procurement at MSP was the need of the hour. He categorically said that any change in this could lead to serious unrest amongst the farmers.
Badal asked the Union Minister to make the necessary recommendations to the concerned quarters for continuing this system of price support mechanism to the farmers. Pleading the case of implementing Swaminathan’s formula (Cost + 50% profit), the Chief Minister said that it was one of the viable solution to stabilize the present crisis in agriculture economy of the country. Moreover, he said that it was also the major issue of NDA’s agenda. Mr. Badal also said that for the success of crop diversification program, the Union government must evolve a mechanism for procurement of alternative crops like Maize and Basmati by providing MSP like Paddy to them. Seeking crop insurance scheme for the farmers to protect them from vagaries of nature and climate change, the Chief Minister said that it was the need of the hour as due to squeezing margins of profit agriculture was no longer a profitable venture now. He also urged the Union Minister to revise the norms for relief of damage to crops due to natural calamities thereby re-fixing compensation in case of complete crop loss to at least Rs 20,000 per acre instead of existing Rs 3600 per acre, which was too meagre and inadequate.
Flagging up another issue, the Chief Minister advocated that crop diversification should be substituted with agriculture diversification and alternatives like Dairying, fishery, poultry, piggery, goatery, apiary and others must be included in agriculture diversification for financial assistance by the government adding that a scheme must be introduced for promotion of local breeds of cows like Sahiwal, Rathi, Gir, Tharparkar and others. Similarly, Mr. Badal urged the Union Minister to recommend a strong case to the Ministry of Finance for the exemption of Income tax on all these other activities like agriculture adding that Agriculture Implements including combine harvesters and their parts should also be exempted from payment of Central Excise.
The Chief Minister also said that recommendations must also be made to the Union Finance Ministry for providing interest free short term crop loans to small and marginal farmers whereas other farmers must be provided crop loans at two percent and agriculture investment credit at six percent rate of interest. Likewise, he said that the Union Finance Ministry must be urged to reintroduce Income Tax exemption scheme for state and Central Cooperative banks that was withdrawn in 2007. Similarly, Mr. Badal also sought recommendations to the Ministry of Finance for capital infusion of Rs 150 crore to State Cooperative Banks so that they could achieve CRAR 7% by March 31, 2015.
The Chief Minister also sought the expedite release of funds to the tune of Rs 21 crore to the ICAR for setting up Regional Centre of ICAR-Central Institute of Fresh Water Aquaculture, Bhubaneswar at Bathinda over 12 acres of land. Besides, he also demanded to set up a Horticulture university to boost the prospects of ongoing efforts under Agriculture Diversification. Apart from these issues, the Chief Minister also raised another significant issue for the benefit of Dairy farmers to relax the condition of 4% Milk fat in the state at par with prevalent 3.5% in other states and urged the Union Minister to recommend state’s case in this behalf to the Ministry of Health, GoI to immediately sort this issue.
Responding to the various issues raised by the Chief Minister, Mr. Radha Mohan Singh assured him of all possible help and cooperation to the state government to bail out the farmers from current agrarian crisis. He agreed to the proposal for establishing Horticulture University in the state. Mr. Radha Mohan Singh asked the Chief Minister to submit a comprehensive plan in this regard at the earliest.
Likewise, the Union Minister also telephoned the Union Health Minister Mr. JP Nadda in the meeting thereby strongly recommending the state’s plea to bring down the Milk fat rate from 4% to 3.5% in Punjab for making it uniform with the other states. Mr. Radha Mohan Singh also asked the Chief Minister to submit a detailed proposal for seeking 100% grant under National Gokul scheme which was aimed at improving the local/ desi breeds of Cows.
He also apprised the Chief Minister that the Ministry has already finalized the modalities for the National Crop Insurance scheme after due deliberations with all the stakeholders and would be announced shortly. Mr. Radha Mohan Singh further said that the ICAR would expedite the process of setting up of regional Centre of Central Institute of Freshwater Aquaculture (CIFA) to promote fishery in Punjab. The Chief Minister was accompanied by Additional Chief Secretary (Development) Mr. Suresh Kumar, his Principal Secretary Mr. SK Sandhu and Special Principal Secretary Mr. KJS Cheema.