{"id":168166,"date":"2022-02-12T09:15:22","date_gmt":"2022-02-12T03:45:22","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=168166"},"modified":"2022-02-11T23:56:44","modified_gmt":"2022-02-11T18:26:44","slug":"answered-to-what-extent-has-the-msp-policy-achieved-its-intended-purpose-analyzing-the-limitations-of-the-msp-policy-suggest-remedial-measures","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/answered-to-what-extent-has-the-msp-policy-achieved-its-intended-purpose-analyzing-the-limitations-of-the-msp-policy-suggest-remedial-measures\/","title":{"rendered":"[Answered] To what extent has the MSP Policy achieved its intended purpose. Analyzing the limitations of the MSP policy, suggest remedial measures"},"content":{"rendered":"<table style=\"border-collapse: collapse; width: 100%;\">\n<tbody>\n<tr>\n<td style=\"width: 100%;\"><b><span data-contrast=\"none\">Introduction: <\/span><\/b><span data-contrast=\"none\">Write about MSP policy in India explaining the context.<\/span><span data-ccp-props=\"{}\"><br \/>\n<\/span><b><span data-contrast=\"none\">Body: <\/span><\/b><span data-contrast=\"none\">Write major objectives of MSP policy. Write the achievements of MSP policy. Write the challenges of MSP policy. Write remedial measure to address the challenges.<\/span><span data-ccp-props=\"{}\"><br \/>\n<\/span><b><span data-contrast=\"none\">Conclusion: <\/span><\/b><span data-contrast=\"none\">Conclude contextually, giving a way forward.<\/span><b><span data-contrast=\"none\">\u00a0<\/span><\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span data-contrast=\"none\">Minimum Support Price (MSP) is a market intervention by the Government <\/span><b><span data-contrast=\"none\">to protect farmers against any sharp fall in farm prices<\/span><\/b><span data-contrast=\"none\">. It was <\/span><b><span data-contrast=\"none\">first introduced in 1966-67<\/span><\/b><span data-contrast=\"none\">. At present Government announces minimum support prices (MSPs) for 22 mandated crops and fair and remunerative price (FRP) for sugarcane.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{}\">\u00a0<\/span><span data-contrast=\"none\">The MSP policy was introduced with the following major objectives.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\u2022\" data-font=\"\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">To assure remunerative and relatively stable price environment for the farmers.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u2022\" data-font=\"\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">Inducing farmers to increase production and thereby augment the availability of food grains.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"none\">Achievements of the MSP policy.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\u2022\" data-font=\"\" data-listid=\"8\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Food security: <\/span><\/b><span data-contrast=\"none\">After independence India had to import food grains (Under PL-480 agreement from USA) in to order to feed the population, Now India is not only self sufficient but also among top 10 agricultural produce exporters in the world.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u2022\" data-font=\"\" data-listid=\"8\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Price Guarantee<\/span><\/b><span data-contrast=\"none\">: MSP is announced in the pre sowing season that allows the farmer to take an informed decision, with guarantee of price.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u2022\" data-font=\"\" data-listid=\"8\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Support to Public distribution system<\/span><\/b><span data-contrast=\"none\">: More than 80 crore people receive food grains under the PDS system. Food Corporation of India (FCI) also maintains buffer stock which more than 3 times of the buffer norms fixed in 2015.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u2022\" data-font=\"\" data-listid=\"8\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Price stabilization<\/span><\/b><span data-contrast=\"none\">: There has been relative stability in the prices of crops under the\u00a0 MSP regime, which protects the ordinary consumer along with farmers.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"none\">However, there are challenges related to the MSP policy.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\u2022\" data-font=\"\" data-listid=\"9\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Distortion of Crop pattern toward paddy and wheat<\/span><\/b><span data-contrast=\"none\">: The area under cultivation of rice and wheat from the time of the Green Revolution till recently increased from 30 million hectares to 44 million hectares (~50% increase) and 9 million hectares to 31 million hectares (~250% increase), respectively, while that of coarse cereals plunged from 37 million hectares to 25 million hectares (~33% increase).<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u2022\" data-font=\"\" data-listid=\"9\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Achieved Food security undermining Nutrition security<\/span><\/b><span data-contrast=\"none\">: With the MSP farmers shifted from nutritional food crops to wheat and rice only, which reduced the availability of nutritional foods.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u2022\" data-font=\"\" data-listid=\"10\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Unsustainable Farming practice: <\/span><\/b><span data-contrast=\"none\">Almost 68% of Indian agriculture is rain-fed, which is suitable for drought resistant crops like millets, pulses etc. The MSP regime resulted cultivation of water intensive crops like Rice and Sugarcane which affected the water availability in the region.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u2022\" data-font=\"\" data-listid=\"10\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Economically Unsustainable<\/span><\/b><span data-contrast=\"none\">: The economic cost incurred by the Food Corporation of India(FCI) for procurement of rice and wheat is much higher than market price. Due to this, the FCI\u2019s economic burden is touching Rs 3 lakh crore.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\u2022\" data-font=\"\" data-listid=\"10\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Loopholes in the Implementation of MSP Scheme: <\/span><\/b><span data-contrast=\"none\">The <\/span><b><span data-contrast=\"none\">Shanta Kumar Committee<\/span><\/b><span data-contrast=\"none\"> had stated that only 6% of the MSP could be received by the farmers, which directly means that 94% of the farmers in the country are deprived from the benefit of the MSP.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u2022\" data-font=\"\" data-listid=\"10\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"none\">No MSP For Allied Sector: <\/span><\/b><span data-contrast=\"none\">There is no minimum support price (MSP) for products of animal husbandry or fisheries and no procurement by the government. Allied sector has the potential to raise farmer\u2019s income and the target of doubling of farmers income.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"none\">To address these challenges following measure could be taken<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\u2022\" data-font=\"\" data-listid=\"10\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Inclusion of more crops in MSP regime<\/span><\/b><span data-contrast=\"none\">: Including more crops under the MSP regime, would promote crop diversification. Which will improve\u00a0 availability of nutritional foods and sustainability of agriculture in India.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u2022\" data-font=\"\" data-listid=\"10\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Announcing a band of MSP:<\/span><\/b><span data-contrast=\"none\"> Rather than a fixed price, a band of price for each crop with a maximum and a minimum price depending on harvest conditions (i.e. higher price in a bad harvest and lower price in a good harvest year in general) will have its price set in the band. In this way MSP will be more in sync with the market, reducing economic burden of the Government.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u2022\" data-font=\"\" data-listid=\"10\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Decentralized Implementation: <\/span><\/b><span data-contrast=\"none\">MSP scheme could be implemented<\/span> <span data-contrast=\"none\">Effectively by decentralising the implementing agencies under the constitutionally mandated supervision of panchayats. Thereby increasing the reach of MSP.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"none\">MSP policy has some positive impact on the farming sector in India but there is a need to rethink the MSP regime in view of its adverse effects.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction: Write about MSP policy in India explaining the context. Body: Write major objectives of MSP policy. Write the achievements of MSP policy. Write the challenges of MSP policy. Write remedial measure to address the challenges. Conclusion: Conclude contextually, giving a way forward.\u00a0 Minimum Support Price (MSP) is a market intervention by the Government to&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/answered-to-what-extent-has-the-msp-policy-achieved-its-intended-purpose-analyzing-the-limitations-of-the-msp-policy-suggest-remedial-measures\/\">Continue reading <span class=\"screen-reader-text\">[Answered] To what extent has the MSP Policy achieved its intended purpose. Analyzing the limitations of the MSP policy, suggest remedial measures<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[139,25,9],"tags":[501,10637],"class_list":["post-168166","post","type-post","status-publish","format-standard","hentry","category-mains-marathon","category-mains-marathon-answers","category-public","tag-msp","tag-msp-policy","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/168166","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=168166"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/168166\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=168166"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=168166"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=168166"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}