Agriculture Standing Committee: Farm Labourer and MSP Proposals
Why in the news
The Standing Committee on Agriculture made proposals pointing towards fairer, more secure farm policy: a new ministry name, a wage body for farm labour, organic MSP and better use of funds.
Key recommendations
| Area | Proposal | Main challenge |
|---|---|---|
| Ministry name | Department of Agriculture, Farmers, and Farm Labourers Welfare | New data, programme redesign, budget shifts; State-specific dynamics |
| Wages | National Commission for Minimum Living Wages | Agriculture is a State subject; hard to monitor small and medium farm owners |
| Crop insurance | Tailored cover for smallholders | Fiscal cost; low awareness and red tape |
| Organic crops | MSP for organic produce | Must not weaken the wider MSP demand; need steady demand |
| Funds | Real-time monitoring, regular impact checks | Unspent allocations |
Key facts
- The present name is Department of Agriculture and Farmers Welfare; the change would recognise farm labourers, mostly landless and marginalised, as a separate stakeholder group.
- Farm labourers often earn below minimum wage and lack formal wage protection; a commission could curb exploitation, ease rural poverty and indebtedness, and lift rural demand.
- Smallholders (under 2 hectares) make up 86% of the agricultural workforce, yet PMFBY reaches few of them because of high premiums and delayed claims.
- Organic farmers face higher costs, a 3-year transition to certification and erratic demand; MSP could make organic farming viable.
- The panel said organic MSP must not dilute the wider demand for MSP under the Swaminathan formula (C2 + 50%).
Fund utilisation
- Unspent allocations cause under-use of resources, delayed benefits and weak accountability.
- Remedies: real-time tracking at district and State levels and periodic impact assessments.
- Expected gains: efficient spending, fewer leaks and delays, sharper targeting.
Way forward
- Success needs coordination among the Union and State governments, financial institutions and rural governance bodies.
Exam angle
- Body: Standing Committee on Agriculture.
- Formula: Swaminathan formula, C2 + 50%.
- Scheme: PM Fasal Bima Yojana (PMFBY) has low smallholder reach.
- Constitutional point: agriculture falls in the State List.