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Farm relief, new MSP regime on govt's to-do list

squo; incomes between 2017 and 2022, but farmers have been hobbled by unprofitable sales and even negative returns on some crops, as farm produce continue to sell below federally fixed rates known as Minimum Support Prices (MSPs). A three-pronged agenda is likely to be taken up, one that will aim to overhaul the MSP regime and warehousing and agricultural markets as well as widening of income support to farmers, an official said on condition of ano

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Perils of over-promising -Ashok Gulati

the food and agri-sector, including those pertaining to farmers’ incomes. In 2014, the BJP manifesto promised to implement the Swaminathan Committee report, especially its recommendation on Minimum Support Prices (MSPs) being 50 per cent above the costs incurred by farmers. For four years after assuming office, the party never talked about this promise. In the fifth year, the government raised MSPs to 50 per cent above costs, but the referen

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Food inflation falls to lowest level since 1991 -Surojit Gupta

food inflation had fallen below 1% was in 1999-2000. Economists attribute low food prices to a string of factors including bumper crop, low demand, low global prices, and muted impact of increased Minimum Support Prices (MSP). Low and stable food prices are good for everybody except farmers, unless it is accompanied by increase in productivity. “I would attribute it to two factors—above the trend growth in farm produce in the las

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Farm income support, a silver bullet? -Radheshyam Jadhav, Vishwanath Kulkarni, Rutam Vora, V Sajeev Kumar, KV Kurmanath, TV Jayan and A Srinivas

when onion farmers in Ahmednagar, Maharashtra, took to the streets. The protests spread like wildfire to Madhya Pradesh. In northern Karnataka, pulses growers were up in arms against crashing prices. Minimum Support Prices were not holding up. Flustered governments began to trot out loan waivers as their election promises. It was with the roll-out of Rythu Bandhu in Telangana in 2018 that the tide turned. Says agriculture commentator Devinder Sharm

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Is farmer income support a sustainable solution? -Sanjiv Phansalkar

-VillageSquare.in Income support to smallholder farmers is similar to palliative measures like Minimum Support Prices or loan waivers that do not address the problem of an unsustainable population living on a fixed resource base The government in the budget for this year has announced an allocation of Rs 75,000 crore for direct income transfer of Rs 6,000 annually for every farmer who owns less than 2 hectares of land. This amount is to be gi

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Income transfers are hottest trend in agricultural policy. But how do states identify beneficiaries? -Mridula Chari

ad protests. States such as Madhya Pradesh and Haryana have toyed with market-level intervention schemes, where they paid farmers the difference between the market price and the centrally-declared Minimum Support Prices. However, traders have taken advantage of these schemes to artificially drop market prices at the expense of the government. Please click here to read more.

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Rajasthan alleges Centre's discriminatory attitude towards farmers

nt in Rajasthan has accused the Centre of adopting a “discriminatory attitude” towards the State’s farmers, reflected in the lower targets set for procurement of mustard and gram on Minimum Support Prices in comparison with the national average. A ceiling of 25-quintal purchase on a day has been set for the farmers. State Cooperative Minister Udai Lal Anjana has taken up the matter with Union Agriculture Minister Radha Mohan Si

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Tackling the agrarian crisis, differently -V Kumaraswamy

rejuvenating soil health Agrarian crisis is staring on our face and, as usual, a flood of familiar suggestions have resurfaced. The political responses have been on expected lines. Fixing MSPs (Minimum Support Prices) at 50 per cent over costs is as disastrous as it can get. There is no inherent incentive in cutting down the bill on government or the rest of society. It may be possible in Western societies where 2-10 per cent of farmers depend u

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Crumbs for farmers -R Ramakumar

the current agrarian distress that are striking. Between 2003 and 2010, Indian agriculture grew commendably thanks to two fortuitous factors: externally, higher global prices and, internally, higher Minimum Support Prices (MSPs). The terms of trade—the ratio of “prices received” to “prices paid out” by farmers for inputs—rose, allowing farmers to survive a period of rising costs of production. After 2011, however,

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An appeasement Budget -Puja Mehra

ong the reasons to which it can be ascribed are legacy farm sector policy issues which no government has addressed in a meaningful way. In this, Mr. Modi’s government has been no different. The Minimum Support Prices and procurement policies it followed were more ineffective than is normal. In fact these policies reversed some of the corrections made by the previous United Progressive Alliance (UPA) government in the terms of trade for agricultu

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