By The Sampadak Express
The Standing Committee of Parliament on Agriculture, led by former Punjab Chief Minister Charanjit Singh Channi, has recommended significant reforms to better support India’s agricultural workforce, particularly farm labourers. In a report tabled in Parliament on March 12, 2025, the committee urged the government to rename the Union Agriculture Ministry to better reflect the role of farm workers in the sector.
The panel proposed changing the name of the ‘Department of Agriculture and Farmers Welfare’ to ‘Department of Agriculture, Farmers and Farm Labourers Welfare’. The committee argued that this change would acknowledge the vital contribution of farm labourers, who often belong to marginalized communities and play a crucial role in agriculture but are frequently overlooked in policy discussions and welfare programs.
New Commission for Farm Labourers’ Wages
In addition to the name change, the committee recommended the establishment of a ‘National Commission for Minimum Living Wages for Farm Labourers’. This body would address wage disparities and work towards improving the living standards of farm labourers.
Concerns Over Declining Budget Allocations
The committee expressed concerns over the declining proportion of the central budget allocated to the agriculture sector. Over the past five years, the percentage of the total Central outlay for the Ministry has steadily decreased—from 3.53% in 2021-22 to 2.51% in 2025-26. The committee stressed the importance of reversing this trend, especially as over 50% of India’s population depends on agriculture for their livelihood.
Call for MSP for Organic Crops
The committee also recommended expanding the Minimum Support Price (MSP) system to include organic crops. While maintaining that the broader MSP framework should remain rooted in the Swaminathan formula, it suggested that organic produce MSP be set higher than conventional crops to offset initial yield losses and the costs associated with transitioning to organic farming.
Free Crop Insurance for Small Farmers
Further, the committee proposed the introduction of a “free and compulsory” crop insurance scheme for small farmers with land holdings of up to two hectares. Drawing inspiration from the Pradhan Mantri Jan Arogya Yojana, the committee argued that such a scheme could significantly improve the financial security of smallholder farmers, protecting them from crop losses and reducing their dependence on high-interest loans from informal sources.
By providing a safety net against crop failures, the committee believes this initiative would help small farmers avoid debt traps, reinvest in subsequent crop cycles, and encourage the adoption of better farming practices.
The committee’s recommendations aim to address the growing challenges faced by India’s agricultural sector, emphasizing the importance of supporting farm workers, enhancing financial protections for smallholder farmers, and ensuring that the agriculture ministry reflects the diverse contributors to the sector.
