MSP demand - What the government can do - An analysis

SHARE:

A comprehensive look at what changes are needed in the MSP system now

SHARE:

MSP demand - What the government can do - An analysis

Read more on - Polity | Economy | Schemes | S&T | Environment

  • The story: The PM announced the repeal of three new farm laws, but agitating farmers said they were to protest unless a firm guarantee on MSP was given in writing. In the past one year, the government has made some big changes in the manner in which the Minimum Support Price (MSP) mechanism was being administered.
  • The goal: Government is focused on ensuring that only genuine farmers get the benefit of MSP and most of them fall under the ambit of procurement. There could now also be some reforms in the manner in which fertiliser subsidies are delivered to the farmers.
  1. Though the mandate of the Committee promised by PM Modi in his address, while announcing the repeal of the three acts, is yet to be spelled out, but it might look at more reforms in the sector that can be accomplished with the active cooperation of states.
  2. The Agriculture Minister has mentioned that the new panel will consider the next set of reform measures for the sector.
  3. Meanwhile, on MSP, the government has already aligned its paddy purchases to the average yield of a district from 2021. This system, which has been in place in most of the paddy and wheat procurement states since the last few years, will now be extended to the entire country, including Punjab.
  4. The system has also made it mandatory for all states to upload land records of farmers on the state procurement portals, which will now be integrated with a central database.
  5. The government has also laid down some minimum threshold parameters that each procurement portal designed and developed by the state governments need to have.
  6. Each state portal will now be integrated with a centralised system through which it can be monitored centrally how much grain has been procured from each field and how the MSP is transferred into the bank account of farmers.
  • Demands from the PM: After the PM's repeal promise, members of the Samyukta Kisan Morcha (SKM) announced that protests would go on till the government addressed their demand for a legal guarantee on MSP and other issues including - no changes in the subsidy of electricity, withdrawal of cases against protesting farmers, compensation to grieving families whose members died during the protest, and also a resolution on the Lakhimpur Kheri violence with the sacking and arrest of MoS Ajay Mishra. The SKM in its open letter to the PM called the repeal a "one-sided announcement".
  1. The farmers are demanding a government guarantee in writing for the the MSP system, assuring them of a fixed price for their crops, 1.5 times of the cost of production
  2. The SKM has earlier planned a march to Parliament on November 29, the first day of the winter session.
  • Technical suggestions: Protestors also say that the Centre along with states could consider guaranteeing some sort of profitable price for each crop in each region. The CACP does calculate the Cost of production region wise, but the cost of production of each crop in each place is different. That pre-determined profitable price can then be paid by anyone who plans to purchase. Broad-basing and including more items into the PM-ASHAA scheme could be tried to ensure that some sort of assured purchase to the farmers. Under the PM-ASHAA scheme, only oilseeds and pulses are included.
  1. The Pradhan Mantri Annadaata Aay Sanrakshan Abhiyan or PM-AASHA broadly has three components, which are the Price Support Scheme (PSS), the Price Deficiency Payment Scheme (PDPS) – modeled on the lines of erstwhile Bhawantar Bhugtan Yojana of Madhya Pradesh and Private Procurement and Stockiest Scheme that was launched on a pilot basis.
  2. Under it, the Centre’s total procurement is capped at 25 per cent of the total production of a crop in the state, which can be expanded up to 40 per cent if the commodity is used for PDS or for any other state welfare scheme. Previous attempts at deficiency price payment in case of Madhya Pradesh’s Bhawantar Bhugtan Scheme wasn’t very successful over allegations that traders formed cartels to artificially keep the prices down.
  3. There could also be an option to explore something like a minimum reserve price for private traders to buy based on the production cost as estimated by the Commission for Agriculture Costs and Prices (CACP). But this could be applicable only for the 23 crops for which CACP determines the production cost. The Committee for Doubling Farmers’ Income has indeed talked about such a reserve price.
  4. It said there was a need for setting a minimum reserve price, distinct from the MSP such as to protect the interests of the farmers without distorting the market forces as whenever market prices fall before the notified MSP, there is no minimum reserve price for the private trade that is conducted at the markets. In laying down a benchmark, care has to be taken to protect the free trade practices since MSP based procurements cannot become universal. It is therefore suggested that the cost of production can become such a reserve price.
  • One district one crop: Farmers say that a policy like one district one crop will hurt the farmers of western UP the most, as they will be at the mercy of corporate pricing. Industrial pricing can never be compared to agricultural pricing, which is why a legal guarantee on MSP is necessary. Not only should the government put a mechanism for procurement in place for MSP, but also give the farmer a backup so that they are not exploited. A legal guarantee on MSP has been an old demand of farmers that the government had rejected even during talks, citing fiscal constraints.
  1. For 50 years, the so-called MSP regime has been in operation but the reality is, according to government data, only 6% of farmers get what it calls minimum support. (some experts reckong the figure is more like 25%)
  2. What is needed is converting that into a legal guarantee so that farmers are not dependent on executive orders and the whims of governments. Without infrastructure and funds, MSP is just on paper.
  • What MSP would mean: A legal guarantee on MSP does not mean that the government was responsible for the procurement of all crops but for putting in place a mechanism that will ensure that the farmers get MSP for their entire crop, no matter who buys. The government can do this whichever way it wants – by procurement, by deficit payment or by market intervention and raising the price itself.
  • EXAM QUESTIONS: (1) Explain the technical issues involved in ensuring a fixed Minimum Support Price for crops produced by Indian farmers. (2) What was the key reason the government decided to repeal the three farm laws? Explain. (3) If you were the policymaker, what ten steps would you take to ensure that farmers of India adopted productive practices, and a large no. were moved into other sectors of the economy?
                    Read more on - Polity | Economy | Schemes | S&T | Environment

                    #FarmLaws #Repeal #MSP #







                    * Content sourced from free internet sources (publications, PIB site, international sites, etc.). Take your own subscriptions. Copyrights acknowledged.

                    COMMENTS

                    Name

                    01-01-2020,1,04-08-2021,1,05-08-2021,1,06-08-2021,1,28-06-2021,1,Abrahamic religions,6,Afganistan,1,Afghanistan,35,Afghanitan,1,Afghansitan,1,Africa,2,Agri tech,2,Agriculture,150,Ancient and Medieval History,51,Ancient History,4,Ancient sciences,1,April 2020,25,April 2021,22,Architecture and Literature of India,11,Armed forces,1,Art Culture and Literature,1,Art Culture Entertainment,2,Art Culture Languages,3,Art Culture Literature,10,Art Literature Entertainment,1,Artforms and Artists,1,Article 370,1,Arts,11,Athletes and Sportspersons,2,August 2020,24,August 2021,239,August-2021,3,Authorities and Commissions,4,Aviation,3,Awards and Honours,26,Awards and HonoursHuman Rights,1,Banking,1,Banking credit finance,13,Banking-credit-finance,19,Basic of Comprehension,2,Best Editorials,4,Biodiversity,46,Biotechnology,47,Biotechology,1,Centre State relations,19,CentreState relations,1,China,81,Citizenship and immigration,24,Civils Tapasya - English,92,Climage Change,3,Climate and weather,44,Climate change,60,Climate Chantge,1,Colonialism and imperialism,3,Commission and Authorities,1,Commissions and Authorities,27,Constitution and Law,467,Constitution and laws,1,Constitutional and statutory roles,19,Constitutional issues,128,Constitutonal Issues,1,Cooperative,1,Cooperative Federalism,10,Coronavirus variants,7,Corporates,3,Corporates Infrastructure,1,Corporations,1,Corruption and transparency,16,Costitutional issues,1,Covid,104,Covid Pandemic,1,COVID VIRUS NEW STRAIN DEC 2020,1,Crimes against women,15,Crops,10,Cryptocurrencies,2,Cryptocurrency,7,Crytocurrency,1,Currencies,5,Daily Current Affairs,453,Daily MCQ,32,Daily MCQ Practice,573,Daily MCQ Practice - 01-01-2022,1,Daily MCQ Practice - 17-03-2020,1,DCA-CS,286,December 2020,26,Decision Making,2,Defence and Militar,2,Defence and Military,281,Defence forces,9,Demography and Prosperity,36,Demonetisation,2,Destitution and poverty,7,Discoveries and Inventions,8,Discovery and Inventions,1,Disoveries and Inventions,1,Eastern religions,2,Economic & Social Development,2,Economic Bodies,1,Economic treaties,5,Ecosystems,3,Education,119,Education and employment,5,Educational institutions,3,Elections,37,Elections in India,16,Energy,134,Energy laws,3,English Comprehension,3,Entertainment Games and Sport,1,Entertainment Games and Sports,33,Entertainment Games and Sports – Athletes and sportspersons,1,Entrepreneurship and startups,1,Entrepreneurships and startups,1,Enviroment and Ecology,2,Environment and Ecology,228,Environment destruction,1,Environment Ecology and Climage Change,1,Environment Ecology and Climate Change,458,Environment Ecology Climate Change,5,Environment protection,12,Environmental protection,1,Essay paper,643,Ethics and Values,26,EU,27,Europe,1,Europeans in India and important personalities,6,Evolution,4,Facts and Charts,4,Facts and numbers,1,Features of Indian economy,31,February 2020,25,February 2021,23,Federalism,2,Flora and fauna,6,Foreign affairs,507,Foreign exchange,9,Formal and informal economy,13,Fossil fuels,14,Fundamentals of the Indian Economy,10,Games SportsEntertainment,1,GDP GNP PPP etc,12,GDP-GNP PPP etc,1,GDP-GNP-PPP etc,20,Gender inequality,9,Geography,10,Geography and Geology,2,Global trade,22,Global treaties,2,Global warming,146,Goverment decisions,4,Governance and Institution,2,Governance and Institutions,773,Governance and Schemes,221,Governane and Institutions,1,Government decisions,226,Government Finances,2,Government Politics,1,Government schemes,358,GS I,93,GS II,66,GS III,38,GS IV,23,GST,8,Habitat destruction,5,Headlines,22,Health and medicine,1,Health and medicine,56,Healtha and Medicine,1,Healthcare,1,Healthcare and Medicine,98,Higher education,12,Hindu individual editorials,54,Hinduism,9,History,216,Honours and Awards,1,Human rights,249,IMF-WB-WTO-WHO-UNSC etc,2,Immigration,6,Immigration and citizenship,1,Important Concepts,68,Important Concepts.UPSC Mains GS III,3,Important Dates,1,Important Days,35,Important exam concepts,11,Inda,1,India,29,India Agriculture and related issues,1,India Economy,1,India's Constitution,14,India's independence struggle,19,India's international relations,4,India’s international relations,7,Indian Agriculture and related issues,9,Indian and world media,5,Indian Economy,1248,Indian Economy – Banking credit finance,1,Indian Economy – Corporates,1,Indian Economy.GDP-GNP-PPP etc,1,Indian Geography,1,Indian history,33,Indian judiciary,119,Indian Politcs,1,Indian Politics,637,Indian Politics – Post-independence India,1,Indian Polity,1,Indian Polity and Governance,2,Indian Society,1,Indias,1,Indias international affairs,1,Indias international relations,30,Indices and Statistics,98,Indices and Statstics,1,Industries and services,32,Industry and services,1,Inequalities,2,Inequality,103,Inflation,33,Infra projects and financing,6,Infrastructure,252,Infrastruture,1,Institutions,1,Institutions and bodies,267,Institutions and bodies Panchayati Raj,1,Institutionsandbodies,1,Instiutions and Bodies,1,Intelligence and security,1,International Institutions,10,international relations,2,Internet,11,Inventions and discoveries,10,Irrigation Agriculture Crops,1,Issues on Environmental Ecology,3,IT and Computers,23,Italy,1,January 2020,26,January 2021,25,July 2020,5,July 2021,207,June,1,June 2020,45,June 2021,369,June-2021,1,Juridprudence,2,Jurisprudence,91,Jurisprudence Governance and Institutions,1,Land reforms and productivity,15,Latest Current Affairs,1136,Law and order,45,Legislature,1,Logical Reasoning,9,Major events in World History,16,March 2020,24,March 2021,23,Markets,182,Maths Theory Booklet,14,May 2020,24,May 2021,25,Meetings and Summits,27,Mercantilism,1,Military and defence alliances,5,Military technology,8,Miscellaneous,454,Modern History,15,Modern historym,1,Modern technologies,42,Monetary and financial policies,20,monsoon and climate change,1,Myanmar,1,Nanotechnology,2,Nationalism and protectionism,17,Natural disasters,13,New Laws and amendments,57,News media,3,November 2020,22,Nuclear technology,11,Nuclear techology,1,Nuclear weapons,10,October 2020,24,Oil economies,1,Organisations and treaties,1,Organizations and treaties,2,Pakistan,2,Panchayati Raj,1,Pandemic,137,Parks reserves sanctuaries,1,Parliament and Assemblies,18,People and Persoalities,1,People and Persoanalities,2,People and Personalites,1,People and Personalities,189,Personalities,46,Persons and achievements,1,Pillars of science,1,Planning and management,1,Political bodies,2,Political parties and leaders,26,Political philosophies,23,Political treaties,3,Polity,485,Pollution,62,Post independence India,21,Post-Governance in India,17,post-Independence India,46,Post-independent India,1,Poverty,46,Poverty and hunger,1,Prelims,2054,Prelims CSAT,30,Prelims GS I,7,Prelims Paper I,189,Primary and middle education,10,Private bodies,1,Products and innovations,7,Professional sports,1,Protectionism and Nationalism,26,Racism,1,Rainfall,1,Rainfall and Monsoon,5,RBI,73,Reformers,3,Regional conflicts,1,Regional Conflicts,79,Regional Economy,16,Regional leaders,43,Regional leaders.UPSC Mains GS II,1,Regional Politics,149,Regional Politics – Regional leaders,1,Regionalism and nationalism,1,Regulator bodies,1,Regulatory bodies,63,Religion,44,Religion – Hinduism,1,Renewable energy,4,Reports,102,Reports and Rankings,119,Reservations and affirmative,1,Reservations and affirmative action,42,Revolutionaries,1,Rights and duties,12,Roads and Railways,5,Russia,3,schemes,1,Science and Techmology,1,Science and Technlogy,1,Science and Technology,819,Science and Tehcnology,1,Sciene and Technology,1,Scientists and thinkers,1,Separatism and insurgencies,2,September 2020,26,September 2021,444,SociaI Issues,1,Social Issue,2,Social issues,1308,Social media,3,South Asia,10,Space technology,70,Startups and entrepreneurship,1,Statistics,7,Study material,280,Super powers,7,Super-powers,24,TAP 2020-21 Sessions,3,Taxation,39,Taxation and revenues,23,Technology and environmental issues in India,16,Telecom,3,Terroris,1,Terrorism,103,Terrorist organisations and leaders,1,Terrorist acts,10,Terrorist acts and leaders,1,Terrorist organisations and leaders,14,Terrorist organizations and leaders,1,The Hindu editorials analysis,58,Tournaments,1,Tournaments and competitions,5,Trade barriers,3,Trade blocs,2,Treaties and Alliances,1,Treaties and Protocols,43,Trivia and Miscalleneous,1,Trivia and miscellaneous,43,UK,1,UN,114,Union budget,20,United Nations,6,UPSC Mains GS I,584,UPSC Mains GS II,3969,UPSC Mains GS III,3071,UPSC Mains GS IV,191,US,63,USA,3,Warfare,20,World and Indian Geography,24,World Economy,404,World figures,39,World Geography,23,World History,21,World Poilitics,1,World Politics,612,World Politics.UPSC Mains GS II,1,WTO,1,WTO and regional pacts,4,अंतर्राष्ट्रीय संस्थाएं,10,गणित सिद्धान्त पुस्तिका,13,तार्किक कौशल,10,निर्णय क्षमता,2,नैतिकता और मौलिकता,24,प्रौद्योगिकी पर्यावरण मुद्दे,15,बोधगम्यता के मूल तत्व,2,भारत का प्राचीन एवं मध्यकालीन इतिहास,47,भारत का स्वतंत्रता संघर्ष,19,भारत में कला वास्तुकला एवं साहित्य,11,भारत में शासन,18,भारतीय कृषि एवं संबंधित मुद्दें,10,भारतीय संविधान,14,महत्वपूर्ण हस्तियां,6,यूपीएससी मुख्य परीक्षा,91,यूपीएससी मुख्य परीक्षा जीएस,117,यूरोपीय,6,विश्व इतिहास की मुख्य घटनाएं,16,विश्व एवं भारतीय भूगोल,24,स्टडी मटेरियल,266,स्वतंत्रता-पश्चात् भारत,15,
                    ltr
                    item
                    PT's IAS Academy: MSP demand - What the government can do - An analysis
                    MSP demand - What the government can do - An analysis
                    A comprehensive look at what changes are needed in the MSP system now
                    https://blogger.googleusercontent.com/img/a/AVvXsEhj5Iz4mJ98MoHVkYAtwLkN8-v2_UoVuFe8ibEgwZ2aeYHwWbyNYEA8yTeVZJJDy8uZQM5Fxo23AW2QhMmP9E3Y-nIaHLC4UjBf4q6Wel64IUlxyiWRN7yCrL3n1Th_6y8bgTf_CqXfsdhWDbAHYbFhRAWfbwzswve1VQPmU3ARkYTI0GEmcN7GkY47ww=s16000
                    https://blogger.googleusercontent.com/img/a/AVvXsEhj5Iz4mJ98MoHVkYAtwLkN8-v2_UoVuFe8ibEgwZ2aeYHwWbyNYEA8yTeVZJJDy8uZQM5Fxo23AW2QhMmP9E3Y-nIaHLC4UjBf4q6Wel64IUlxyiWRN7yCrL3n1Th_6y8bgTf_CqXfsdhWDbAHYbFhRAWfbwzswve1VQPmU3ARkYTI0GEmcN7GkY47ww=s72-c
                    PT's IAS Academy
                    https://civils.pteducation.com/2021/11/MSP-demand-What-the-government-can-do-An-analysis-Prelims-UPSCMainsGSIII-Essaypaper-Agriculture-GovernmentSchemes-SocialIssues-GovernanceandInstitutions.html
                    https://civils.pteducation.com/
                    https://civils.pteducation.com/
                    https://civils.pteducation.com/2021/11/MSP-demand-What-the-government-can-do-An-analysis-Prelims-UPSCMainsGSIII-Essaypaper-Agriculture-GovernmentSchemes-SocialIssues-GovernanceandInstitutions.html
                    true
                    8166813609053539671
                    UTF-8
                    Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow TO READ FULL BODHI... Please share to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy