For Mains: Minimum Support Price, Major crops cropping patterns in various parts of the country, Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
The slowdown in the economy after 2016-17 followed by the pandemic further ensured that the situation remains precarious for the majority of the farmers.
Higher input prices for diesel, electricity and fertilisers have only contributed to the misery.
It ensures that farmers receive a fair price for their crops, which helps in reducing farm distress and poverty. This is particularly crucial in states where agriculture is a major source of livelihood.
Smaller farmers, in particular, may find it challenging to access these channels, leading to inefficiencies and reduced benefits for them.
Burden on Government:
The government shoulders a significant financial burden in procuring and maintaining buffer stocks of MSP-supported crops. This diverts resources that could be allocated to other agricultural or rural development programs.
To encourage crop diversification and reduce the dominance of rice and wheat, the government can gradually expand the list of crops eligible for MSP support. This will provide farmers with more choices and promote the cultivation of crops in line with market demand.
Instead of providing MSP for all crops across all regions, the government can focus on setting MSPs for crops that are essential for food security and those with a demonstrated impact on farmer livelihoods. This targeted approach can help optimize resource allocation.
Improve and modernize procurement mechanisms to ensure that farmers have access to MSPs. This may involve creating more efficient procurement systems, reducing middlemen, and expanding the reach of procurement agencies.
UPSC Civil Services Examination Previous Year Question (PYQ)
Q. Consider the following statements: (2020)
In the case of all cereals, pulses, and oil seeds, the procurement at Minimum Support price (MSP) is unlimited in any State/UT of India.
In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise.
Which of the statements given above is/are correct?
(a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2
Q. Consider the following statements: (2023)
The Government of India provides Minimum Support Price for niger (Guizotia abyssinica) seeds.
Niger is cultivated as a Kharif crop.
Some tribal people in India use niger seed oil for cooking.