Question Q.13GS3GS3
Legalizing the Minimum Support Price (MSP) would create more challenges than it resolves.
Main Body
Minimum Support Prices are the lower benchmarking of price support below which prices will not go to ensure remunerative prices for farmers. 23 crops have MSP support in India. Legalizing MSP creating challenges: (1) Athok Gulani highlighted the problem of inadequate crop diversification. eg: Wheat - Paddy MSP hike led to highscale production. (2) Issue of soil health degradation eg: N:P:K ratio at place Ideal4:2:1 Real9:3:1
3Increased similar demands by other sectors of farmers eg: Farm projects done by rich farmers promoting own profits. (4) High scale groundwater issue eg: Punjab / West UP → Groundwater led to table going down. (5) Right based remunerations is leading to higher revenue expenditure and reduced focus from capital expenditure on modernization. eg: only 45% agriculture is weather dependent. (6) MSP not reach the Small and Marginal farmers eg: 90% are Small and Marginal Farmers in India who sell in local markets. (7) Low stacking capacity of FCI eg: 120-60% food storage capacities [END]
However there are a few positives as well: (1) Increased assured income support for farmers. (2) Incentives for improved productivity. (3) Adopt technology and modernization to increase yield. (4) Rural population development through better incomes. Way forwardDiversification to high value crops eg: Horticulture 9-30% Agriculture GVA Localized market prices through support regime. Adoption of technology and increased capacities of existing APMCs. The profile like Digital Agriculture Mission through large of AgriTech act well instead towards unprecedented advantages and double income.
248 words1 paragraphs
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Topper
Ayush Pathak
AIR 2152025
Subject & Paper
GS3GS3
Topic
Agriculture and Food Security
Issues Related to Direct & Indirect Farm Subsidies & Minimum Support Prices
Issues Related to Direct & Indirect Farm Subsidies & Minimum Support Prices
Writing Stats
248
Total words
1
Paragraphs
analytical
Tone