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'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Farm unions are increasing pressure on the government to give a legal guarantee for the minimum support prices (MSP) of crops.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Since the announcement to withdraw three farm laws, the farms unions have refused to withdraw protests unless MSP is legalized.</span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""> </span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The Cabinet Committee on Agriculture Produce (CCAP) announces MSP for 23 crops every year before the sowing season.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The MSP seeks to provide a minimum 50% return on all cultivation costs, which however is on paper.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The prices received by farmer for crops after the harvest season is well below the MSP. They cannot demand these prices as MSP does not have a legal backing.</span></span></p>
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<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>MSP crops</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Cereals: Paddy, wheat, maize, bajra, jowar, ragi and barley</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Pulses: Chana, tur/arhar, moong, urad and masur</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Commercial crops: Sugarcane, cotton, copra and raw jute</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Oil seeds: Rapeseed-mustard, groundnut, soyabean, sunflower, sesamum, safflower and nigerseed</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Implementing the demand</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The first method can be through forcing private traders to provide MSP. Such mechanism already exists for sugarcane mills.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The second method is government providing MSP through its agencies such as National Agricultural Cooperative Marketing Federation of India (Nafed), Cotton Corporation of India (CCI) and Food Corporation of India (FCI).</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The third method of implementation is through the price deficiency payments. Government does not force buying at MSP. It allows farmers to sell at prevailing market prices and only pays the difference amount.</span></span></p>
</li>
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<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""> </span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Other demands</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Several farm unions have demanded that prices should be calculated according to varied input rates across 15 agro-climatic zones.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">There is also a demand that MSP is extended to fruits and vegetable farmers.</span></span></p>
</li>
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<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Government’s position</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Government has announced setting up of a committee to make MSP more transparent and promote change in crop pattern.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The government says that price levels cannot be sustained through legal status without proper demand and supply.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">In sugar sector, government mandated MSP for sugarcane has forced sugar mills to accumulate thousands of crore in arrears. This is because of low sugar prices, high supply and low liquidity.</span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">In Maharashtra, a law that made it punishable for traders for buying produce below MSP resulted in buyers withdrawing when prices fell below MSP.</span></span></p>
</li>
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'title' => 'Legal guarantee for MSP',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Farm unions are increasing pressure on the government to give a legal guarantee for the minimum support prices (MSP) of crops.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Since the announcement to withdraw three farm laws, the farms unions have refused to withdraw protests unless MSP is legalized.</span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""> </span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The Cabinet Committee on Agriculture Produce (CCAP) announces MSP for 23 crops every year before the sowing season.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The MSP seeks to provide a minimum 50% return on all cultivation costs, which however is on paper.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The prices received by farmer for crops after the harvest season is well below the MSP. They cannot demand these prices as MSP does not have a legal backing.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>MSP crops</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Cereals: Paddy, wheat, maize, bajra, jowar, ragi and barley</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Pulses: Chana, tur/arhar, moong, urad and masur</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Commercial crops: Sugarcane, cotton, copra and raw jute</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Oil seeds: Rapeseed-mustard, groundnut, soyabean, sunflower, sesamum, safflower and nigerseed</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Implementing the demand</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The first method can be through forcing private traders to provide MSP. Such mechanism already exists for sugarcane mills.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The second method is government providing MSP through its agencies such as National Agricultural Cooperative Marketing Federation of India (Nafed), Cotton Corporation of India (CCI) and Food Corporation of India (FCI).</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The third method of implementation is through the price deficiency payments. Government does not force buying at MSP. It allows farmers to sell at prevailing market prices and only pays the difference amount.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""> </span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Other demands</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Several farm unions have demanded that prices should be calculated according to varied input rates across 15 agro-climatic zones.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">There is also a demand that MSP is extended to fruits and vegetable farmers.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Government’s position</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Government has announced setting up of a committee to make MSP more transparent and promote change in crop pattern.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The government says that price levels cannot be sustained through legal status without proper demand and supply.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">In sugar sector, government mandated MSP for sugarcane has forced sugar mills to accumulate thousands of crore in arrears. This is because of low sugar prices, high supply and low liquidity.</span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">In Maharashtra, a law that made it punishable for traders for buying produce below MSP resulted in buyers withdrawing when prices fell below MSP.</span></span></p>
</li>
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