Wed Mar 12 16:27:14 UTC 2025: ## Parliament Panel Recommends Overhaul of Agriculture Ministry and Crop Insurance

**New Delhi, March 13, 2025** – A Parliamentary Standing Committee on Agriculture has called for significant changes to India’s agricultural policies, including a name change for the Ministry of Agriculture and a comprehensive, free crop insurance scheme for small farmers.

The committee, chaired by former Punjab Chief Minister Charanjit Singh Channi, recommends renaming the “Department of Agriculture and Farmers Welfare” to the “Department of Agriculture, Farmers and Farm Labourers Welfare.” This change, the report states, would formally recognize the crucial role of often-overlooked farm laborers in the agricultural sector. The committee further proposes a “National Commission for Minimum Living Wages for Farm Labourers” to address wage disparities and improve their living standards.

The report also highlights a concerning decline in budgetary allocations to the Department, dropping from 3.53% of the total Central outlay in 2021-22 to 2.51% in 2025-26. The committee urges the government to reverse this trend, given that over 50% of the population depends on agriculture for their livelihood.

Addressing the financial vulnerabilities of small farmers, the committee strongly advocates for a free and compulsory crop insurance scheme for those with land holdings up to two hectares. This initiative, modeled after the Pradhan Mantri Jan Arogya Yojana, aims to provide a safety net against crop failure, reducing reliance on high-interest loans and preventing debt traps.

Furthermore, the panel recommends Minimum Support Prices (MSP) for all organic crops, in addition to existing MSPs for traditional crops. This, they argue, would incentivize a shift towards organic farming, while acknowledging that initial yields might be lower. The MSP for organic produce should be higher than for conventional crops to compensate for this difference.

The committee’s report, tabled in Parliament on March 12th, 2025, represents a significant call for reform within India’s agricultural sector, emphasizing the need to protect and support all those involved in food production.

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