Soon, Maharashtra Will Make Minimum Price Mandatory For Crops Not Covered By MSPA farmer’s mandi.(Photo by Sneha Srivastava/Mint via Getty Images)

Maharashtra Cooperation Minister Subhash Deshmukh on Monday (10 September) said that the Fadnavis government is working on a framework to cover the non-Minimum Support Price (MSP) crops under a Statutory Minimum Price (SMP) under the Agricultural Produce and Livestock Marketing (Promotion and Facilitating) Act, 2017 reports The Financial Express.

SMP is announced by the Central government on the estimates of the cost of cultivation by the Commission for Agricultural Costs and Prices (CACP). The SMP then becomes the minimum price that for example, a sugar mill owner has to pay to a sugarcane producer. The proposal will be presented to the Maharashtra Assembly before it is given a green signal.

A proposal to include the fines and jail term on the SMP clause for non-compliance and non-payment of the SMP as well as the State Advisory Price (SAP) is also on the cards.

The idea though limited to sugarcane as of now, will be extended to other crops through an ordinance subsequently, said the minister.

States like Uttar Pradesh and Tamil Nadu have a policy of announcing a minimum price or state advised price for sugarcane, which is usually higher than the Fair and Remunerative Price for it.

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