India's price intervention policies to support its agricultural sector not only create a broken system but also complicate matters related to international trade rules. Critically discuss.
Main Body
Ordian (2%) population is engaged in agriculture while it created only 16% contribution to gdp. This mismatch is handled by price intervention policies of government, such as MSP, market intervention scheme MIS, public distribution system PDS. Price intervention schemes - 1. Domestic issues create broken system - 1.1. Monopoly of some states and regional leads to disparities - lease & wheat are promoted which are water-intensive rnc and under nutritiened security 1.1.1. 5 states contribute to wheat PDS procurement. 1.2. Not enough embrace on cash crops, horticulture not part of MSP. 1.3. Distorted import - export system, so no MSP from already leading to import bill. 2. International trade rules issues - 2.1. Against 'agreement on agriculture' of WTO where these subsidies over counted under Amber box. 2.2. Creates system of subsidies (ceftus much fatticle) leading to SFs rules violation & import affected.
1.2. Not enough embrace on cash crops, horticulture not part of MSP. 1.3. Distorted import - export system, so no MSP from already leading to import bill. 2. International trade rules issues - 2.1. Against 'agreement on agriculture' of WTO where these subsidies over counted under Amber box. 2.2. Creates system of subsidies (ceftus much fatticle) leading to SFs rules violation & import affected. India is a rural economy dependent on agriculture, price intervention is necessary for giving reeve prices to reeve farmers. TOTAL scheme is right step here.
Conclusion
India is a rural economy dependent on agriculture, price intervention is necessary for giving relief prices to farmer. TOTAL scheme is right step here.
24 words
Priyanka Choudhary
Agriculture and Food Security
Agricultural Pricing Policy and Subsidies
Price Intervention Schemes
256
Total words
1
Paragraphs
analytical
Tone