ISSUES FOR FARMERS (Syllabus: GS Paper 3 – Economy)

Context: Minimum support price, loan waivers, and crop insurance remain critical concerns for farmers amidst ongoing agricultural reforms.

Issues for Farmers

• Statutory MSP: The demand for implementing MSP at C2+50%, as promised by Narendra Modi in 2014, remains unaddressed, crucial for resolving the agrarian crisis.
• Reduction of Production Costs: Amid rising costs of fertilizers, seeds, insecticides, diesel, water, and electricity, Budgetary provisions are needed to alleviate production expenses and support farmers effectively.
• Support for Public Sector: To enhance self-reliance and control costs, the Budget should bolster public sector companies engaged in producing fertilizers, insecticides, and seeds.
• Crop Insurance Scheme: It distinct from PMFBY, is needed to safeguard farmers against climate-related adversities.
• Expansion of MGNREGA: Increasing workdays and wages under MGNREGA to 200 days and ₹600 respectively is crucial to bolster rural employment and purchasing power.
• Land Reforms and Acquisition: Urgent land reforms are needed to prevent corporate acquisition and ensure fair compensation, especially for tribal lands, adhering strictly to public use requirements.

Related Terms

• Minimum Support Price: MSP serves as a government-established rate at which crops are bought from farmers, providing them with protection against significant declines in agricultural prices.
• Crop Insurance Scheme: To protect the farmers against the crop losses suffered on account of natural calamities, such as, drought, flood, hailstorm, cyclone, pests and diseases.
• MGNREGA: It is a demand-driven scheme, that seeks to provide guaranteed 100 days of wage employment per year to every rural household whose adult members volunteer to do unskilled manual work.