The MSP system, though well-intentioned, has led to market distortions and ecological stress, necessitating reforms to make it more inclusive and efficient. Examine.
Main Body
Minimum Support Price is announced for certain crops before the season to promote farmers in cultivating these crop by giving certainty of income generation. Market Distortions: 1) led to one of the reason of increasing inflation as MSP sets lower limit for market industry. Increasing MSP easily inflation. 2) skewed market-availability as MSP is robust only in certain states. 3) Scarcity of pulses and oil as MSP focuses mainly on wheat and oil rice. 4) Labelled under Amber both as market distorting by WTO. 5) Burden on Govt (Invest, subsidy and general). Ecological Stress: 1) Monoculture – Hamperer biodiversity, increase chance of crop failure due to pest attack. 2) Loss of biodiversity is clearing of forests in western UP. 3) Groundwater table shrinking, 1 litre of rice takes 5000 litre of waters. 4) Overuse of pesticide [fertilizer]. Algal bloom, eutrophication, etc. Reforms needed in MSP to make it more inclusive and efficient: In Expanding MSP to pulse and oil. MSP as per state (charged MSP) by MSP by milledrin UP, Rajasthan beside lowering for rice. In long-term MSP needs to scrap off by – securing buffer infrastructure by establishing cold storage, other PHCs – establishing food processing units (climate sealed) – Allowing private players. Hence an EVERGREEN REVOLUTION is needed which will be a saimbow reformation of agriculture.
Conclusion
Hence an EVERGREEN REVOLUTION is needed which will be a saimbow reformation of agriculture.
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Diagram
Box diagram showing challenges of MSP with three branches: Market Distortions, Ecological Stress, and Reforms needed in MSP to make it more inclusive and efficient
ANKIT RAUSHAN
Agriculture and Food Security
Government Schemes
Minimum Support Price system and reforms
232
Total words
1
Paragraphs
analytical-critical
Tone