NEW DELHI: Manmohan Singh government had turned down Swaminathan Committee's recommendation for minimum support price that was at least 50% higher than the weighted average cost of production, arguing that it would distort the market.
"A mechanical linkage between MSP and cost of production may be counter-productive in some cases," K V Thomas, who was minister of state for agriculture and food, had said in response to a Parliament question in 2010 posed by BJP's Prakash Javadekar. Thomas had said govt was of the view that the Commission on Agricultural Costs and Prices recommended MSP based on "objective criteria and considering a variety of factors".
On Tuesday, Congress functionaries, including party president Mallikarjun Kharge and MP Rahul Gandhi, had said they would bring a law guaranteeing MSP in case they were voted to office. Rahul said his party "decides for the country and not for politics", while questioning criticism over the promise to give legal guarantee on MSP. He also sought to counter claims that the Swaminathan Committee report was not implemented by Congress, saying UPA had implemented 175 of the 201 recommendations.
Based on the recommendations of the committee, set up by UPA, farmers are demanding implementation of the C2+50 formula - which is a comprehensive cost including imputed cost of capital and the rent on the land owned by farmers - for 23 crops covered by MSP.
Centre has, however, said the issue needs to be dealt with in detail before it can commit to meet the demand.