Why MSP needs to be used smartly

MSP IN 2021

While farmers in the country need substantial subsidies to upgrade the farming and other infrastructure facilities only the strategic use of minimum support price (MSP) will have to be emphasized. MSP and government procurement systems can prove to be effective in encouraging demand-based farming. Crop diversification needs to be implemented with special subsidies immediately in states with the green revolution.

 

MSP should be given 

This will help in the conservation of natural resources, direct benefit to farmers. At the same time, in order to make its penetration in the global market, the pattern of agricultural subsidies will have to be changed. its direct benefit will be available to the farmers of the country and industry, business, and general consumers. in fact, the entire intention and usefulness of MSP depend on the selection of which farmers and on which crops MSP should be given. For example, we are surplus in wheat and rice and still dependent on imports in pulses and oilseeds. This is dependent on imports is decreasing at the same pace with which we increased the MSP of pulses and oilseeds.

Chana's  MSP was rupees 2100  in 2010, which by 2019 increased to rupees 4875. During this period production also crossed 11 million tonnes from 8 million tonnes. That is MSP is a tool through which we can promote the production of essential crops. It is another matter that experts consider incentives and green subsidies more appropriate than MSP. Senior agriculture scientist Padamshree Dr. RB Singh says 'MSP needs to be implemented with holistic and innovating thinking. This for small farmers should be implemented in States where the need is felt. India has become a country with surplus food grains due to which the prices of food grains in the open market are below the MSP.

In the recommendations of former union food ministers Shanta Kumar committee, the same thing has been said that there is a dire need to revisit the significance of the MSP once again. At present only 6% of farmers have access to MSP. instead of expanding its scope, it needs to be shifted. The MSP should be used in the eastern states rich in the countries natural resources and ready for the second green revolution. It is clear that the demand for MSP will have to be combined with based farming.

 

Subsidize farmers

for PDS government procurement of crops like rice and wheat starts in the open market instead of MSP then there will be a balance of demand and supply. The government agency will get the freedom to buy quality grain according to their own mind, then consumers can get wood grain. This can avoid the wastage of thousands of crores of rupees under the guise of MSP, which can be used to subsidize farmers in other ways. 

87% of the farmers in the country are small and marginal. Only 60% of the needs of such farmers are met through agriculture. They have to depend on co-enterprises for the rest of their needs. Such benefits can be given to such farmers.

 

 

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