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Policy must tackle not just dissatisfaction of large farmers, but distress of most vulnerable -Bina Agarwal

nt, and institutional innovations, and not a one-size-fits-all approach. The two main policy interventions repeatedly discussed in recent months to tackle farmer distress — loan waivers and minimum support prices (MSP) — treat all farmers (large/small, male/female) alike. But farmers are heterogeneous. They differ especially by income, land owned and gender. And farmer dissatisfaction is not the same as farmer distress. Better-off farm

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Addressing agrarian distress: An alternative 'area planning' price support scheme for farmers -Sher Singh Sangwan

lation of crop production Farmers are always in distress when prices of their produce are subdued. The response of governments, obviously prompted by political pressures, has been to sharply hike minimum support prices (MSP) of crops or declare loan waivers. Thus, the current government at the Centre has significantly raised the MSPs of both the kharif and rabi crops for 2018-19, while claiming to have implemented the ruling party’s 2014

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Farmers bear the burden of deflation -Harish Damodaran

ato, pulses or sugar prices triggering export bans, duty-free imports and stockholding restrictions. The burden of hawkish policy responses fell mainly on farmers, who were also granted only moderate minimum support price hikes during the first three years of this government. The third trigger for depressed farm realisations has, of course, been demonetisation. Consumer food inflation has for 28 consecutive months — from September 2016 to Dec

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A Plague of Promises -Yogendra Yadav

e.in What the Modi economy has done to farmers On his way to the prime ministership in 2014, Narendra Modi promised that, if his Bharatiya Janata Party won power, the government would raise the minimum support prices paid for crops such as rice and wheat to guarantee farmers a 50-percent profit on their production costs. The benchmark was first proposed by the Swaminathan Commission, formed in 2004 to address farmers’ economic plight, and

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Pulses and Oilseeds: Nafed buy may drop by a third -Prabhudatta Mishra

s of January 3. As reported by FE earlier, under its price-deficiency payment scheme Bhavantar, which doesn’t involve physical procurement of crops, the Madhya Pradesh government has ensured minimum support price (MSP) benefit for over 15 lakh tonnes of soybean and another 9 lakh tonnes of maize. While PM-AASHA hasn’t lifted the sentiment in the rural sector, the Narendra Modi government is now formulating another package for farmers th

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MSP was not 1.5 times the cost of production for most kharif crops during the last 6 agricultural years

of the BJP had stated that the farmers should get at least 1.5 times the cost of their production. So, the ruling NDA government at the Centre, which has been sensitive to that resolution, declared a minimum support price (MSP) for the majority of rabi crops during rabi marketing season (RMS) 2018-19 at least at 1.5 times the cost of production, said Jaitley. He added that the NDA government decided to extend that formula for fixing MSP for the rest o

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MSP intervention: A different surplus -Harish Damodaran

and 3.61 lt of groundnut pods by Nafed and SFAC in 2013-14, when the Congress-led United Progressive Alliance was in power. But in the last two years, especially 2017-18, governmental purchases at minimum support prices (MSP) have been across the board for major pulses — arhar/tur (pigeon-pea), moong (green gram), urad (black gram), chana and masoor (lentil) — and oilseeds, including groundnut, rapeseed-mustard and soyabean (see table).

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Farm crisis: Short-term palliatives are futile -G Chandrashekhar

petitiveness of Indian agriculture stands substantially eroded. Farmers remain mired in an artificial world of make-believe security through largely cosmetic policies including announcement of higher minimum support price (unrelated to market conditions and not adequately backed by efficient procurement mechanism), farm loan waiver, and a plethora of programmes and schemes whose implementation and outcomes are far from clear. Sops and palliatives m

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An answer to rural distress -Ashok Gulati & Shweta Saini

ail a long gestation period and with the Lok Sabha elections barely four months away, demands for quick-fix solutions are increasing. Three significant solutions have been doing the rounds: Higher minimum support prices (MSPs), loan waivers, and direct income/investment support. In this article, we evaluate the three to identify one that can be a winner, both politically and economically. For political acceptance, we evaluate the scheme for its rea

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Farm loan waivers can derail India's growth story -Ramesh Chand

’ discontent is the low level of farm income. Farmers have been seeking higher prices to address this. To meet this demand, the Central government announced a change in cost criteria for fixing minimum support prices (MSP) and thereby substantially raised MSP for kharif 2018 and rabi 2019 crops. Simultaneously, the government also expanded procurement operations to oilseeds and pulses. This has pulled up the farm harvest prices of almost all kha

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