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15/07/2022 - Agriculture

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July 15, 2022

Do you think that the Deficiency Price Payments can be considered as an alternative to Minimum Support Price? Comment (200 Words)

Refer - Financial Express

Enrich the answer from other sources, if the question demands.

3 comments
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IAS Parliament 2 years

KEY POINTS

·        The problems with MSP, a legacy of the green revolution since the late 1960s, are several. They mainly benefit large surplus-producing farmers in the vanguard agrarian regions of Punjab, Haryana and western Uttar Pradesh.

·        Extending them to more crops, besides wheat and rice, also has serious implications for the exchequer if it is backed by open-ended procurement.

·        For such reasons, there is a need to rethink MSPs and consider DPPs. The latter compensates farmers for the difference between the MSPs for select crops and their mandi price if it rules at lower levels, and does not entail physical procurement.

·        This is inspired by Madhya Pradesh’s Bhavantar Bhugtan Yojana, introduced in October 2017 following violent agrarian protests in the state against falling crop prices.

·        Subsequently, a price deficiency scheme (largely for oil seeds) formed part of the Pradhan Mantri Annadata Aay Sankrakshan Abhiyan (PM-AASHA).

·        Scaling up a DPP to the national level clearly calls for a closer examination how it worked in MP and on a limited scale for oilseeds.

·        In MP, BBY was given up the very next season as traders had gamed the system, widening the gap between mandi price and MSPs, causing an enormous amount of expenditure by the state government.

·        The method of calculation of compensation and paperwork involved also needs to be simplified to enable more small farmers to register for the scheme.

 

 

 

Aravind R 2 years

Kindly review this mam/sir

IAS Parliament 2 years

Good attempt.Keep Writing.

K. V. A 2 years

Kindly review

IAS Parliament 2 years

Good attempt. Keep Writing.

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