Not by MSPs

Not by MSPs

News.

1.Concerns associated with ensuring remunerative rates to the framers produce.

Important Facts

2.The crops are selling below Minimum Support Price (MSPs) even before starting of Kharif Marketing season.

3. Maharashtra government has ordered private traders to buy at MSPs, or face a one-year jail term.

4.Gov. of India came out with a new initiative PM-AASHA to address of MSP and Remunerative prices.

5. About Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA)

• The Scheme is aimed at ensuring remunerative prices to the farmers for their produce as announced in the Union Budget for 2018.
• It includes the mechanisms such as
  • Price Support Scheme (PSS)
  • Price Deficiency Payment Scheme (PDPS)
  • Pilot of Private Procurement & Stockist Scheme (PPPS).

6. Earlier initiatives of the government for farmers welfare.

• Increasing the MSP of kharif crops by following the principle of 1.5 times the cost of production.
• Implementation of Pradhan Mantri Fasal Bima Yojana, Pradhan Mantri Krishi Sinchai Yojana, Paramparagat Krishi Vikas Yojana and distribution of Soil Health Cards has been undertaken.

7.Concern and challenges in implementation of scheme.

• Mechanism of private procurement & Stockist.
  • Private traders rely on principle of demand and supply, whereas MSPs follows buy and store
  • Quantum of buying, storing and disposing of grains by government agencies which has its own set problems.
  • If private traders are entrusted to procure, how they will be compensated for losses.

8 Way ahead for giving remunerative prices to farmers.

• Liberation of Market
  • Letting the farmer to grow any crop based on market signals.
  • Market driven sell and purchase of crops.
• National market for agricultural produce.
• Doing away with all storage and movement restrictions of crops.
• Government need to formulate a mechanism of payment to farmer on flat per-acre independent of the crop being grown.