Question 13GS3GS2

"The main point of MSP is to protect farmers from sudden price shock. Do you think legalization of MSP can insure farmers from sudden price shocks? What are the other measures which can be taken to make MSP-led procurement effective?"

Main Body

Government provides MSP on 23 crops to support farmers from market uncertainties like sudden price shocks. Legalisaion of MSP; insurance against sudden price shocks - Arguments for: (1) By legalisaion will make it a right of farmers to sell their produce at assured price for their produce. (2) Will reduce regional disparities in MSP procurement by effective only in a few states like Punjab, Haryana, Western U.P.

3MSP for other crops → will lead to get diversification by currently effective procurement only for wheat & rice. Arguments against: (1) Heavy fiscal burden on government. (2) Will lead to huge losses due to mismatch in demand & supply. (3) Price shocks due to other factors like monsoon, drought etc. - can't be integrated. (4) No benefit to exported agricultural produce. Other measures can be taken to make MSP-led procurement effective: (1) Price Deficiency Scheme - give only difference of MSP & market price. (2) Bhavantar Bhugtan Yojana MP

2Private procurement by private prearist & stockist scheme (under PM AASHA) (3) Decentralised procurement by cooperatives model can be used for procurement. (4) Direct Benefit transfer to insure price shocks (eg TALITA scheme, PM EISAN) MSP is not panacea for farmer problems. A robust agriculture market with cold chain facilities & good processing ability will make Indian agriculture produce competitive in global market.

222 words1 paragraphs

Conclusion

MSP is not panacea for farmer problems. A robust agriculture market with cold chain facilities & good processing ability will make Indian agriculture produce competitive in global market.

28 words

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Page 30

Topper

Komal Punia

Subject & Paper

GS3GS2

Topic

Government Policies and Interventions - Design, Implementation and Issues

Government Schemes and Policies

Writing Stats

250

Total words

Paragraphs