If there is a law on MSP, there will be a crisis on the Indian economy: Anil Ghanwat

His remarks came amid demands from farmers for the law on MSP, while he lauded the decision to withdraw three agricultural laws.

“If there is going to be a law (on MSP), we (India) will face a crisis. With the law, if someday the (procurement) process goes down, then no one can buy the product as it is. Wouldn’t be able to get a price lower than the MSP would be illegal and they (traders) would be put in jails for this,” Ghanvat told ANI.

Ghanwat, who is the president of Shetkari Sangathan, said that both the central government and farmer leaders should think of some other way to boost farm income and that legislation on MSP is not a solution.

“It is going to be a crisis as not only traders but also stockists and everyone involved will suffer. Even the commodity market will be disturbed. It will get distorted,” he said.

“We are not against MSP, but open procurement is a problem. We need 41 lakh tonnes of food grains for buffer stock but have procured 110 lakh tonnes. If MSP becomes law, all farmers will get MSP for their crops. and no one will be in a position to earn any of that,” he said.

Ghanvat termed the move to repeal three agricultural laws as “unfortunate”.

“Farmers were demanding reforms for the last 40 years. This is not a good move. The present system of agriculture is not enough,” he said.

“Even if the new laws introduced were not very correct, there were some loopholes that needed to be corrected. I think this government had a desire to reform agriculture because the earlier governments had political There was no will. I hope that another committee consisting of opposition leaders and agriculture leaders from all the states will be formed and then the new agriculture laws will be discussed in the Parliament and it should be introduced.”

Ghanwat said the government has to run the country and also do politics and added that the agitation against the three agricultural laws was “also creating a law and order situation”.

“So maybe he would have thought that if the situation continues like this, then the upcoming Uttar Pradesh elections will not be easy for him and he may suffer loss. So he must have taken this step to avoid loss,” he said.

Ghanvat also suggested that farmers should diversify their produce and go for high value crops which gives them more profit.

“We have to repeal the Essential Commodities Act as it is used as a weapon against the farmers. Whenever the prices rise, the farmers get some benefit, the government intervenes and puts in stock limits. It imposes even more interest on transport limits. It imposes export restrictions. These are the weapons that are used to bring down the prices of agricultural produce which is hurting farmers.”

“It (the three agriculture laws) was an attempt by this government to give some freedom to agriculture, but unfortunately, we have lost it now,” he said.

The protesting farmers, while welcoming the repeal of the three agriculture laws, are demanding remunerative MSP and procurement (C2 at 50% level) as a legal right for “all farmers, for all agricultural products”.