By Maushakar - 02.03.2020
Msp price 2019
While it's tempting to look to benchmarks for guidance, it's only so helpful to know MSPs on average charge between $ - $ per user per. MSP is price fixed by Government of India to protect the producer - farmers - against excessive fall RABI CROPS ( season to be marketed in 21).
Will the same issue come back to haunt the Modi government as well?
The government that came to power in by making the tallest promise ever of raising the minimum support prices MSPdid precious msp price 2019 to live up to that assurance during msp price 2019 first three years.
In principle, raising the MSP for their produce may not msp price 2019 be an economically msp price 2019 way of helping farmers. It can lead to a surplus of food grain here with the Food Corporation of India, in turn, leading to inflation.
It can keep farmers trapped in an ecologically unsustainable practice of cyclical cultivation of wheat and rice. There is an issue of equity msp price 2019, as, the bigger the farmer, the larger is his produce and more msp price 2019 be the output subsidy of support prices msp price 2019 him.
However, when agricultural growth msp price 2019 msp price 2019 and rural distress is palpable, raising the MSP is the only means of pumping money into the rural sector.
The rise in food prices can help not just the surplus producing farmers but also the net food deficit farmers if the latter are protected through an effective food subsidy cover.
So these farmers will sell their produce at relatively higher prices and will msp price 2019 msp price 2019 at cheap rates from the PDS shops.
An increased MSP could raise the wages of farm labourers and they too can msp price 2019 net gainers if they are protected from food inflation.
The increase in purchasing power can thus boost the rural economy.
Against this backdrop, comparing the rise in the MSP under the Modi government with that of the Manmohan Singh government could offer some insight.
The chart below shows the link rise in MSP during msp price 2019 two regimes for major crops.
Of course, comparing ten years to five years of the Modi regime msp price 2019 be unfair. He also tried to correct his course towards msp price 2019 end of his tenure.
The GDP growth msp price 2019 agriculture also dipped significantly during the Modi regime.
Unfortunately, manufacturing growth has also remained sluggish during this period, narrowing the already small openings for the surplus population in agriculture visit web page move out of this msp price 2019.
Modi has cleverly shifted the entire discourse away from vikas towards emotive issues of national security.
Unlike inhe is now invoking the religious identities of farmers. He is speaking msp price 2019 them as a Hindu leader rather than as their prime minister.
Milind Murugkar writes on economic msp price 2019 political issues.
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