'Swaminathan Commission's MSP recommendations economically not feasible, can't be implemented': Top economist

India's leading agricultural economist Ashok Gulati on Thursday said the Swaminathan Commission's recommendations cannot be implemented as they are not economically feasible. "Farmers have been demanding, they have been demanding for the last 15 years. It was submitted in 2006. It was thoroughly reviewed by a committee set up by the Congress government. They rejected it because it was economically not feasible," he said in an interview with news agency ANI.

When asked how the government should move on farmers' demand, the agricultural economist said the government can explore some options like giving the farmers bonuses, compensation, PM-Kisan, and setting up a price stabilisation fund to help them in times of distress. "PM-Kisan can be raised from Rs 6,000 to Rs 10,000," he said. 

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Gulati, however, added that the issue was how much was in the government's kitty. "The consumers want free food. But why are you giving free food to 800 million people? Is this a rational policy? Farmers are taking the risks, and working hard to produce, so farmers' income has to go up," he said. 

Gulati was in the four-member committee set up by the Supreme Court to negotiate with the farmers on the new farm laws in 2021. He had backed the new laws, which the Centre later repealed. The farmers have once again started protests, seeking a law to guarantee minimum support price for their produce. 

However, the economist believes that a law to guarantee minimum support price could be anti-farmer. He said if the government fixes a price then the buyers, in case of low demand, will not touch the produce, which will ultimately affect the farmers.

"It (MSP law) can be anti-farmer. Normally, the prices are decided by demand and supply. If the MSP is made legal, assume - a particular commodity is 100 but the demand is 70 then what will happen? Nobody will touch the remaining 30 it will stay with the farmers. What will you do? What can they do? Because if I buy at a price lower than MSP, I may be put behind bars if it is legal, right? So the issue is simple. When the prices are low, demand is high; when the prices are high, demand is low and the market is to clear. Demanding legal and implementing that all over the country for 23 commodities. To me, it's impossible," he said in an interview with India Today.

Gulati also said that these 23 commodities, for which a price guarantee is being sought, constitute only 28 per cent of the agricultural produce. He said poultry, which is a segment of agriculture, is recording the fastest rate of growth 8 to 9 per cent per annum but there is no MSP for it. "72% of agriculture is driven by market prices, not by MSP. With an MSP of 23 crops, the real implementation of MSP is only in wheat and rice primarily. And that too, in 5-6 states."

Earlier this week, sources told Business Today that the guarantee of MSP can cost the government an additional Rs 10 lakh crore, almost equal to what the government is spending on infrastructure.