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बेसिक इंग्लिश का दूसरा सत्र (कक्षा प्रारंभ : 22 अक्तूबर, शाम 3:30 से 5:30)
Q. Minimum Support Price hike: Comment on recent increase in the minimum support prices of farm products.
Jun 06, 2016 Related to : GS Paper-3

Ans :


Minimum Support Price (MSP) is a form of market intervention by the Government to insure agricultural producers against any sharp fall in farm prices. The main objective is to support the farmers from distress sales and also to procure food grains for public distribution.

To boost the production of pulses and oilseeds, recently central government has announced large scale hike in minimum support prices (MSP) of pulses and oilseeds. Similarly centre also announced nominal hike in MSP of paddy.

New MSPs-

  • MSP of tur (arhar) was increased by Rs 425 a quintal to Rs 5,225.

  • MSP of moong and urad was increased by by Rs 375 a quintal each to Rs 5,225 and Rs 5,000 a quintal, respectively.

  • MSP of groundnut was increased by Rs 190 a quintal to Rs 4,220

  • MSP of soyabean (yellow) was raised by Rs 175 a quintal to Rs 2,775.

  • MSP of sunflower seed was increased by Rs 150 to Rs 3,950 a quintal.

  • MSP of niger seed was raised by Rs 175 to Rs 3,650 a quintal.

  • The MSP of paddy is increased by a nominal 4.3% for the common varieties, while it was increased 4.1%.

Benefits of hike in MSPs-

  • Traditionally MSP regime has worked reasonably well in transferring incomes to rural areas. And it also required in adjusting it for farm-level inflation.

  • The recent hike in MSPs will boost the agriculture economy, and it was more warranted given the farm distress brought on by two successive draughts in the country. The increase was required to offer farmers hope of earning more from the new sowing season.

  • Generally Indian farmers prefer to grow the same crops they have been traditionally doing and many nutritional crops were neglected. In last fiscal year, India has imported heavy amount of pulses. Hence new hike in these crops will encourage to grow nutritional crops. It helps in changing the sowing patters of crops.

  • Aided by good monsoon these crops will also increase the incomes of farmers and overall productivity of farm sector.


  • Recent increase of MSPs ahead of the sowing season may not change sowing patterns much particularly in paddy crop predominant areas and nominal increase in paddy will not have much overall impact on farmers.

  • According to the National Sample Survey Organisation studies, most of the small farmers are unaware of MSP and procurement agencies.

  • Yield per hectare for most crops in India is the lowest among economies with a large agriculture sector. Hence productivity needs to improve, for that MSP alone is not enough.

  • Similarly increase in MSP’s of pulses is unlikely to increase sowing area. Also there is no visible correlation between higher MSP and area under pulses.


  • To increase the farm productivity India needs to adopt more scientific approach to agriculture and needs better investments in research to find better-yielding seeds.

  • For sustainable farming, farmers need to be better educated on the advantages of growing pulses and encouraged to dedicate more acreage for the crop.

  • Apart from this, government needs to strengthen the procurement system for pulses across the country and enlighten the small farmers particularly about the MSP regime and the procurement process.


To improve the productivity of economy, incomes of farmers needs to be increased. And o provide the nutritional needs of people, India cannot be overly dependent on imports of pulses. Hence the farm productivity must be improved. Though recent hike in MSP’s of pulses is welcome step in this direction but it is not enough. Hence government needs to take additional measures to increase the domestic farm productivity with increased yield as well as acreage.

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