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Agriculture

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July 07, 2018

In a bid to address farm sector distress, the GoI has recently increased the minimum support prices (MSP) for kharif crops. Evaluate how far it could help to meet the objective? (200 words)

Refer – The Hindu

Enrich the answer from other sources, if the question demands.

5 comments
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Abhijeet 6 years

       This is really a need for this time that farmers should get more than their expenditure cause it may be possible that in farming a farmer may not be able to invest a lot of money but what he /she invests is their unparralel labour ,their price less sweat in field.

      Now Government of India has decided to provide MSP on certain khariff crops is very important and long awaited good news for farmers as well as well wishers.This good decision should also bring certain initiatives such as every village panchayat or in block level there must be an office to provide current MSP rate details as well as Government or business man should purchase all these crops in the premise of that government office ,that will bring more transparent MSP sharing as well as Crop quality test or weight measurement of crop harvest can be done their with ease.

       It is very true that after increasing MSP rate it is not sure that every farmer will get benifitted from this cause transportaion is also a big factor here to reach local mandi or Agri market cause very few areas have its own mandi as a result farmer gets agree to deal with local or village shopkeeper and this whole MSP concepts ends with lower crop price than MSP  .

  To tackle this situation government should also make people more aware and should organise nukkad sabhas in every village time to time to bring awareness and government should also make NATIONAL FARMER REGISTER to make them aware through phone calls ,Sms in local language after that the MSP will reach to maximum number of farmers and will bring happiness and reach to its objectives.

  

IAS Parliament 6 years

Good try. Focus more on content. Keep writing.

IAS Parliament 6 years

KEY POINTS

Benefits

·         Economy – The hike would boost farmers’ income and purchasing capacity. It would also have a positive impact on the wider economy.

·         Crops – The move helps increasing pulses output and reducing dependency on imports. The Centre has also sought to push millets cultivation.

·         This would benefit dry land farmers as well as the nutrient intake of all consumers.

Concerns

·         Procurement – The hike would be useful only for paddy farmers in states with strong procurement machinery.

·         Because, paddy is the major kharif crop, directly procured and there are no guaranteed mechanisms for procurement of most other crops.

·         For example, Shanta Kumar Committee report highlights that only 6% of all farmers sell their produce to a procurement agency.

·         Price – High MSPs may end up fuelling inflationary expectations. But without procurement, the excess production would only bring down the price.

·         It is then usually sold in the post-harvest peak marketing season at prices far below the MSP. The MSP hike would then actually turn against farmers' interest.

·         Cost – MSP hike for kharif crops includes family labour, but not land costs.

What could be done?

·         These rates have to be ensured to the growers of all the crops and in all areas.

·         The price deficiency payment mechanism suggested by NITI Aayog could be considered.

·         India’s subsistence farmers need support systems other than MSP to alleviate distress. Policymakers need to shift from price support to income support.

·         With the systems in place for direct transfers, the time is ripe. Income support, unlike MSP, will not be contentious with the WTO rules.

·         PDS – Support prices are largely being used to serve populist ends. Instead they must be supplemented by a drive to improve the PDS network.

·         This would benefit the rural households from cheap retail grain as well.

·         While rural incomes may rise from this farm-friendly gesture, concomitant reforms to free agricultural markets are vital to prevent a distortionary effect on farmers’ choices on account of MSPs.

SATHESH KUMAR R 6 years

Please Review

IAS Parliament 6 years

How an increase in MSP will/will not help farmers need to be discussed. Keep writing.  

Shankaranand 6 years

Please Review

Thank You

IAS Parliament 6 years

Better structuring is needed. Keep writing. 

Raghuram 6 years

Please review

IAS Parliament 6 years

A well written answer with a good flow of content. Keep writing.

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