Channi-led Parliament panel recommends MSP for organic products in Demands for Grants 2025-26 report

The Parliamentary Standing Committee on Agriculture, Animal Husbandry, and Food Processing, headed by Charanjit Singh Channi, a former Punjab Chief Minister and MP from Jalandhar, presented its report on the ‘Demands for Grants (2025-26)’ to the Lok Sabha on Wednesday.

One of the committee’s key recommendations was a Minimum Support Price (MSP) for organic produce, in addition to the MSP declared for traditional crops, to promote sustainable farming and ensure fair compensation for organic farmers​.

The committee has emphasised that its earlier recommendations on MSP’s legal guarantee and loan waivers for farmers have yet to be implemented. It urged the government to take immediate steps toward fulfilling these commitments to provide long-term relief and stability to the agricultural sector.

To address the issue of stubble burning and reduce environmental damage, the Committee has proposed financial assistance of Rs 100 per quintal of paddy to farmers as compensation for collecting and managing crop residue. Additionally, a market mechanism for crop residue should be created to compensate farmers for additional costs.

The Committee reiterated its earlier recommendation for free and compulsory universal crop insurance for smallholder farmers to safeguard them from financial losses, reduce rural distress, and ensure food security​.

To acknowledge the critical role of farm labourers in the agriculture sector​, the Committee has recommended renaming the Department of Agriculture and Farmers Welfare as Department of Agriculture, Farmers and Farm Labourers Welfare.

The committee has also recommended transformation of Primary Agricultural Credit Societies (PACS) into ‘Village Supermarkets’ under the PM Kisan Samriddhi Kendras (PMKSKs) initiative​, promoting Grant-in-Aid to the National Cooperative Development Corporation (NCDC) with a Rs 500 crore allocation for cooperative economic development, and expedited setup of Tribhuvan Sahkari University (TSU) for cooperative education and research​.

In another crucial recommendation, the Committee has urged the government to increase the procurement limit under the Market Intervention Scheme (MIS) from the current 25 per cent  to 50 per cent of total estimated production, ensuring better price support and coverage for more farmers​.

Other recommendations include annual audits of the Scheduled Castes Sub Plan (SCSP) by the Comptroller and Auditor General (CAG), and the creation of an AI-enabled web portal with a grievance redressal mechanism to improve transparency and public trust​. Further, the government’s cooperative-led dairy development initiative, ‘White Revolution 2.0,’ was commended, with a recommendation to ensure financial grants reach 1,000 selected Multi-Purpose Agriculture Cooperatives (MPACS) across diverse regions.