{"id":28031,"date":"2024-02-19T05:34:50","date_gmt":"2024-02-19T05:34:50","guid":{"rendered":"https:\/\/edukemy.com\/blog\/?p=28031"},"modified":"2024-02-19T05:34:53","modified_gmt":"2024-02-19T05:34:53","slug":"upsc-mains-how-does-the-minimum-support-price-msp-ensure-a-remunerative-and-relatively-stable-price-environment-for-farmers-contributing-to-the-goal-of-doubling-farmers-income-critically-discu","status":"publish","type":"post","link":"https:\/\/edukemy.com\/blog\/upsc-mains-how-does-the-minimum-support-price-msp-ensure-a-remunerative-and-relatively-stable-price-environment-for-farmers-contributing-to-the-goal-of-doubling-farmers-income-critically-discu\/","title":{"rendered":"UPSC Mains &#8211; How does the Minimum Support Price (MSP) ensure a remunerative and relatively stable price environment for farmers, contributing to the goal of doubling farmers&#8217; income? Critically discuss. (15M, 250 words)"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/edukemy.com\/refer-and-earn\" target=\"_blank\" rel=\"noreferrer noopener\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1280\" height=\"300\" src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/09\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-10-1.png\" alt=\"\" class=\"wp-image-46428\" srcset=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/09\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-10-1.png 1280w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/09\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-10-1-1170x274.png 1170w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/09\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-10-1-585x137.png 585w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/a><figcaption><a href=\"https:\/\/edukemy.com\/refer-and-earn\" target=\"_blank\" rel=\"noopener\" title=\"\">Refer &amp; Earn NOW<\/a><\/figcaption><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-6a14cae243a69\" class=\"ez-toc-cssicon-toggle-label\"><p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-cssicon\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a14cae243a69\"  \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/edukemy.com\/blog\/upsc-mains-how-does-the-minimum-support-price-msp-ensure-a-remunerative-and-relatively-stable-price-environment-for-farmers-contributing-to-the-goal-of-doubling-farmers-income-critically-discu\/#Introduction\" title=\"Introduction:\">Introduction:<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/edukemy.com\/blog\/upsc-mains-how-does-the-minimum-support-price-msp-ensure-a-remunerative-and-relatively-stable-price-environment-for-farmers-contributing-to-the-goal-of-doubling-farmers-income-critically-discu\/#Body\" title=\"Body:\">Body:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/edukemy.com\/blog\/upsc-mains-how-does-the-minimum-support-price-msp-ensure-a-remunerative-and-relatively-stable-price-environment-for-farmers-contributing-to-the-goal-of-doubling-farmers-income-critically-discu\/#MSP_as_a_Remunerative_Tool\" title=\"MSP as a Remunerative Tool:\">MSP as a Remunerative Tool:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/edukemy.com\/blog\/upsc-mains-how-does-the-minimum-support-price-msp-ensure-a-remunerative-and-relatively-stable-price-environment-for-farmers-contributing-to-the-goal-of-doubling-farmers-income-critically-discu\/#Alignment_with_Economic_Goals\" title=\"Alignment with Economic Goals:\">Alignment with Economic Goals:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/edukemy.com\/blog\/upsc-mains-how-does-the-minimum-support-price-msp-ensure-a-remunerative-and-relatively-stable-price-environment-for-farmers-contributing-to-the-goal-of-doubling-farmers-income-critically-discu\/#Criticism_Challenges_of_MSP\" title=\"Criticism &amp; Challenges of MSP:\">Criticism &amp; Challenges of MSP:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/edukemy.com\/blog\/upsc-mains-how-does-the-minimum-support-price-msp-ensure-a-remunerative-and-relatively-stable-price-environment-for-farmers-contributing-to-the-goal-of-doubling-farmers-income-critically-discu\/#Way_Forward\" title=\"Way Forward:\">Way Forward:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/edukemy.com\/blog\/upsc-mains-how-does-the-minimum-support-price-msp-ensure-a-remunerative-and-relatively-stable-price-environment-for-farmers-contributing-to-the-goal-of-doubling-farmers-income-critically-discu\/#In_case_you_still_have_your_doubts_contact_us_on_9811333901\" title=\"In case you still have your doubts, contact us on 9811333901.&nbsp;\">In case you still have your doubts, contact us on 9811333901.&nbsp;<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/edukemy.com\/blog\/upsc-mains-how-does-the-minimum-support-price-msp-ensure-a-remunerative-and-relatively-stable-price-environment-for-farmers-contributing-to-the-goal-of-doubling-farmers-income-critically-discu\/#Visit_our_YouTube_Channel_%E2%80%93_here\" title=\"Visit our YouTube Channel \u2013&nbsp;here\">Visit our YouTube Channel \u2013&nbsp;here<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Introduction\"><\/span>Introduction: <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following two consecutive droughts in 2014-15 and 2015-16, the government aimed to double farmers&#8217; incomes by 2022-23. The Ashok Dalwai Committee, established to formulate a strategy, outlined a seven-year plan beginning in 2015-16, emphasizing the necessity of a 10.4% annual growth rate to achieve this goal.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Body\"><\/span>Body: <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"MSP_as_a_Remunerative_Tool\"><\/span>MSP as a Remunerative Tool:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Income Stability: <\/strong>MSP establishes a minimum price floor, providing guaranteed income for farmers regardless of market conditions, thus contributing to income stability.<\/li><li><strong>Risk Mitigation: <\/strong>Farmers face various risks such as unpredictable weather and pest infestations; MSP acts as a risk mitigation tool by providing a safety net.<\/li><li><strong>Encouraging Crop Diversification: <\/strong>Attractive MSPs for certain crops encourage farmers to cultivate them, promoting crop diversification and reducing risks associated with monoculture.<\/li><li><strong>Investment in Quality Inputs: <\/strong>The assurance of a remunerative price encourages farmers to invest in quality seeds, fertilizers, and technology to enhance productivity.<\/li><li><strong>Government Procurement:<\/strong> Agencies like the Food Corporation of India (FCI) procure rice and wheat from farmers at MSP, ensuring a direct market for their produce.<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Alignment_with_Economic_Goals\"><\/span>Alignment with Economic Goals:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Doubling Farmers&#8217; Income: <\/strong>The Union Budget allocated over Rs 3.70 lakh crore for various subsidies, including MSP, highlighting its pivotal role in the economic strategy.<\/li><li><strong>Positive Impact on Income: <\/strong>According to the Situation Assessment Survey (SAS) of agricultural households (2020-2021), an average agricultural household earned a monthly income of Rs 10,218, showcasing the economic significance of farming.<\/li><li><strong>Incentive for Crop Diversification: <\/strong>States like Punjab, with a robust MSP system, have seen diversification into high-value crops, contributing to income growth.<\/li><li><strong>Role in Modern Agricultural Practices:<\/strong> States showing a correlation between MSP adoption and technology-intensive agriculture, such as Haryana and Punjab, have witnessed improved productivity.<\/li><li><strong>Market-Oriented Agriculture: <\/strong>Schemes like the electronic National Agriculture Market (e-NAM) aim to link farmers directly with markets, enhancing market-oriented agriculture.<\/li><li><strong>Contributing to Rural Economy: <\/strong>Successful MSP implementation in states like Maharashtra and Haryana has positively impacted rural economic indicators, including increased income and employment.<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Criticism_Challenges_of_MSP\"><\/span>Criticism &amp; Challenges of MSP:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>No MSP for Allied Sector: <\/strong>Lack of MSP for animal husbandry and fisheries hinders income augmentation from these sectors, as there is no government procurement.<\/li><li><strong>Demand-Driven Outside APMC Mandis: <\/strong>MSP operates largely outside APMC mandis, impacting market dynamics.<\/li><li><strong>Inadequate Storage System: <\/strong>Continuous MSP hikes for grains face challenges due to overflowing government grain stocks, exceeding buffer stocking norms.<\/li><li><strong>MSPs Favouring Paddy and Wheat:<\/strong> Dominance of MSP in rice and wheat production leads to overproduction, discouraging cultivation of crops with higher demand.<\/li><li><strong>Economically Unsustainable: <\/strong>Procured rice and wheat&#8217;s economic cost exceeds market prices, burdening FCI with an unsustainable economic burden of Rs 3 lakh crore.<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Way_Forward\"><\/span>Way Forward:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Invest in the Agri-Allied Sector:<\/strong> Prioritize investment in animal husbandry, fisheries, and fruits\/vegetables for a more nutritious and diverse agricultural landscape.<\/li><li><strong>Strengthen FPOs: <\/strong>Enhance Farmer&#8217;s Producer Organizations (FPOs) to bolster farmers&#8217; bargaining power and create a conducive investment climate.<\/li><li><strong>Increase Farmer Awareness:<\/strong> Disseminate information at grassroots levels to empower farmers with knowledge and enhance their bargaining capacity.<\/li><li><strong>Ensure Timely Payments: <\/strong>Correct delays in payment to farmers to maintain sustainability in farming, ensuring prompt and remunerative payments.<\/li><li><strong>Promote Irrigation: <\/strong>Invest in irrigation to stabilize state agri-GDP growth, especially in regions with lower irrigation coverage, ensuring a more stable income.<\/li><\/ol>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/edukemy.com\/free-resources-for-upsc?utm_source=Blog&amp;utm_medium=Banner&amp;utm_campaign=Resources\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" width=\"1280\" height=\"300\" data-src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/18.png\" alt=\"\" class=\"wp-image-42398 lazyload\" data-srcset=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/18.png 1280w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/18-1170x274.png 1170w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/18-585x137.png 585w\" data-sizes=\"(max-width: 1280px) 100vw, 1280px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1280px; 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The Ashok Dalwai Committee<\/p>\n","protected":false},"author":17,"featured_media":28021,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[1643],"tags":[232,515,230],"class_list":["post-28031","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-upsc-mains","tag-upsc","tag-upsc-cse","tag-upsc-mains"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/28031","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/comments?post=28031"}],"version-history":[{"count":1,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/28031\/revisions"}],"predecessor-version":[{"id":28038,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/posts\/28031\/revisions\/28038"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/media\/28021"}],"wp:attachment":[{"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/media?parent=28031"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/categories?post=28031"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/edukemy.com\/blog\/wp-json\/wp\/v2\/tags?post=28031"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}