MSP member moots three-tier structure

New Delhi: Against the backdrop of farmers agitating for minimum support price (MSP) be made a legal right, a member of the MSP Committee of the Union government has recommended a three-tier structure to address the various issues in agriculture.

Binod Anand, who is also Secretary General of the Confederation of NGOs of Rural India (CNRI), is among the very few activists in the farm sector who supports economic reforms. He has recommended a three-tier structure with the primary agricultural credit societies (PACS) at the Panchayat level for production and procurement, an agroecology-based second tier for immediate processing, and the cooperative commodity council (CCC) at the State level for marketing.

Asserting that the proposed three-tier structure is the panacea for the current problem of inadequate remuneration for farmers, Anand said this will supplement the development steps already taken by the government. This will also bring good governance, he added.

Saying that the current system of procurement is unsustainable, he recommended the PACS model which is the best solution for the problem.

“Production planning is more important than procurement planning. Farmers should not walk more than five to eight km to sell their produce. We can have the world’s largest warehouse chain.”

CCCs, which will need cooperation among ministries and departments for value chain integration, will provide farmers competitive advantage and the freedom to act in association with other producers. This will give them bargaining power.

CCCs will also play a vital role in reducing price fluctuations and other uncertainties by pooling, collecting, analysing, and disseminating information on market conditions, Anand said. “They will increase competition, provide a place for their members’ products, lower farmers’ production costs, and thus increase farmers’ incomes.”

Anand has also proposed the creation of a Foreign Agriculture & Cooperative Trade Service with a well-qualified, diverse, and inclusive cadre to link Indian agriculture to the global market. This, he said, will enhance export opportunities and global food security. It will ensure relevant trade intelligence, expertise, and analysis to the cooperative sector.