Ensure farmers get paid for produce as per MSP

The Tribune     31st July 2020     Save    
QEP Pocket Notes

Context: Recent reforms in agriculture may not help provide the farmers with higher prices for their produce.

Issues related to recent reforms in agriculture:

  • No respite from middlemen: Central Government’s decision to free farmers from the grasp of middlemen, is far from true. 
  • A majority of crop harvests was sold to the local private trader and a small proportion to the government agency. - National Sample Survey Office (NSSO) 2012-13
  • Side-effects of action against middlemen: Middlemen offer hyper-local infrastructure to farmers to help them avail timely credit and inputs along with procuring the marketable surplus.
  • Restricted Minimum Support Price (MSP) benefits: Just 6 per cent of farmers get the benefit of MSP, while the remaining 94 per cent are dependent on markets.
  • Challenge to provide higher prices remains: even after setting up start-ups and Farmer Producer Organisations as they bring in new technology in agriculture.

Conclusion: The biggest reforms required in agriculture is to get the freedom for farmers to sell to anyone, anywhere, at a price not below the MSP.

QEP Pocket Notes