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

News-CRUX-10     10th July 2024        

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.

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