Parliament Committee’s Recommendations for Farm Workers’ Welfare

March 13, 2025

The Standing Committee of Parliament on Agriculture has proposed reforms to enhance the welfare of farm workers in India. Chaired by Charanjit Singh Channi, the committee’s recommendations aim to better reflect the role of farm labourers in agricultural policy.

Proposals for Renaming the Ministry

The committee suggests changing the name of the ‘Department of Agriculture and Farmers Welfare’ to ‘Department of Agriculture, Farmers and Farm Labourers Welfare’. This renaming acknowledges the crucial contributions of farm labourers, who often belong to marginalised communities. The committee believes this change will promote greater inclusion in policy discussions.

Establishment of a National Commission

To address wage disparities, the committee recommends creating a ‘National Commission for Minimum Living Wages for Farm Labourers’. This commission would focus on improving living standards and ensuring fair compensation for farm workers. The committee emphasises the need for systematic monitoring of funds allocated for agricultural welfare.

Budgetary Allocations and Trends

The report marks a concerning trend in budgetary allocations to the Ministry of Agriculture. The proportion of the total Central outlay has decreased over the years, from 3.53% in 2021-22 to 2.51% in 2025-26. This decline is alarming, given that over 50% of the population relies on agriculture for their livelihood. The committee urges the Ministry to reverse this trend.

Minimum Support Price for Organic Crops

The committee advocates for a Minimum Support Price (MSP) for all organic crops. This measure should not detract from the broader MSP demands based on the Swaminathan formula. The legal framework for MSP should be expanded to incentivise farmers towards organic farming, despite initial yield challenges. The proposed MSP for organic produce should be higher than for conventional crops.

Crop Insurance for Small Farmers

A key recommendation includes introducing a free and compulsory crop insurance scheme for small farmers with land holdings of up to two hectares. This scheme, similar to the Pradhan Mantri Jan Arogya Yojana, aims to provide a safety net against crop losses. It could enhance the financial stability of smallholder farmers, helping them avoid debt traps and encouraging better investment in farming practices.

Impact of Recommendations

The committee’s recommendations, if implemented, could lead to substantial improvements in the agricultural sector. By recognising farm labourers and supporting small farmers, these measures aim to create a more equitable agricultural landscape. The focus on crop insurance and MSP for organic produce could promote sustainable farming practices and improve the livelihoods of those dependent on agriculture.

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