Two Private Members Bills on Farm Loan Waiver & Right to Guaranteed MSP

Two Private Members Bill on Right to guaranteed MSP & Farm loan waiver

Two MPs – Raju Shetti from the Swabhimani Paksha and K.K. Ragesh from the CPI (M) – are planning to move two private members’ bills, dealing with “Farmers’ Right to Guaranteed Remunerative Minimum Support Prices for Agricultural Commodities” and “Farmers’ Freedom from Indebtedness”, in the current session of Parliament.

Both Bills have been prepared by the All India Kisan Sangharsh Coordination Committee (AIKSC), an umbrella body of 193 farmer organisations, after extensive consultations and ground-level feedback.

The AIKSC is holding a round table in the national capital on Wednesday to canvass support for the passage of the two Bills. Several prominent leaders accepted the invitation to come there.

Right to guaranteed Remunerative Minimum support prices :-

The first bill proposes to make “guaranteed remunerative minimum support prices (MSP)” for all crops a legal right for farmers throughout India.

  • The MSPs would provide a minimum 50 per cent return over production costs, which shall be “comprehensive” and covering all paid-out as well as imputed expenses.
  • The MSPs would further be determined by a Central Farmers’ Agricultural Costs and Remunerative Price Guarantee Commission, which will be an autonomous body corporate and whose chairperson and members would be appointed by the Prime Minister, the Leader of the Opposition and the Union Agriculture Minister.
  • The Commission’s recommendations would be binding on the Centre, which will have to notify the guaranteed remunerative MSPs on or before February 28th of every year for ensuing kharif production season and on or before July 31st ahead of the rabi season.

Farmers’ Freedom from Indebtedness :-

The second bill seeks to provide “a one-time immediate and complete loan waiver” to all farmers against debt incurred on account of agricultural production and owed to institutional as well as private creditors.

  • The loan waiver shall be implemented in a single installment by the Government within 3 months of the commencement of this Act.
  • The government shall ensure that all farmers get fresh loans in the ensuing season without any impact due to the implementation of loan waiver,” states the proposed bill.
  • It also add that all private debt of farmers will also “stand null and void” and “no proceeding or suit will lie against the farmer for the principal or interest”.

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