The Indian government has introduced measures to help increase income of farmers who are badly affected by Covid-19. Increase in Minimum Support Price and relaxing loan interest were some of the measures announced by Union Minister Prakash Javadekar in a move to shift from production-centric approach to income-centric approach.
Crux of the Matter
Government reforms Union government has approved an increase in the Minimum Support Prices (MSPs) of 14 Kharif crops to help farmers in the time of Covid-19 crisis. The increased price would ensure 50-83% on cost to farmers.
23 New #VanDhan are added and this is a very big News for the NE States. Hope all are ready to take advantage of the new MSP with procurement operations straight away.#MSPForMFP @PIBGangtok @PIBImphal @PIBKohima @PIBAgartala @PIBShillong @PIB_Guwahati @PIBAizawl @Pra87 pic.twitter.com/vbA5EMEpMa — Van Dhan Yojna by TRIFED (@VanDhanSeVikas) May 27, 2020
The government is also promoting sustainable agriculture with diversified cropping patterns and encouraging farmers to grow oilseed to reduce import bills and to meet up the demand. The government is aiming to achieve higher productivity without jeopardizing the nation’s biodiversity. Besides MSP, the government announced subsidies and extension of repayment date for short-term loans. Further to increase the scope of small scale enterprises in the Aatmanirbhar Bharat package, the government has altered the definition of the MSME (Micro, Small, and Medium Enterprises) sector. The turnover limit for medium enterprises has been revised upward to ₹250 crores from ₹100 crores; the investment limit for medium enterprises has been revised upwards to ₹50 crores from ₹20 crores.
Minimum Support Price (MSP) MSP is the market intervention by the Government to insure agricultural producers against any sharp fall in farm price. MSP ensures minimum price for crops of farmers and helps calculate income of the agriculture sector. It was announced by the government in 1966-67 during the Green revolution for Wheat. MSP was introduced with the aim of providing financial stability to the agricultural system and encourage production. As of now 22 Rabi and Kharif crops are under MSP.
Issues Around MSP
MSPs have unequal access: Benefits don’t reach all farmers and for all crops
Effects of Inflation: Increase in production cost and decreasing value of money make MSPs ineffective
Storage Problems: Procurement without sufficient storage has resulted in huge piling of stocks in the warehouses, resulting in rotting of grains
No long term benefits: Hiking MSP without investing in infrastructure just a short-term play
Nationwide single price policy: Actual cost of production varies from place to place
Curiopedia
M. S. Swaminathan is an Indian geneticist and administrator, known for his role in India’s Green Revolution, a program under which high-yield varieties of wheat and rice were planted. Swaminathan has been called the “Father of Green Revolution in India”.
Norman Ernest Borlaug was an American agronomist who led initiatives worldwide that contributed to the extensive increases in agricultural production termed the Green Revolution. Borlaug was awarded multiple honors for his work, including the Nobel Peace Prize.
Jai Jawaan Jai Kisaan was a slogan of the second Prime Minister of India Lal Bahadur Shastri in 1965 at a public gathering at Ramlila Maidan, Delhi. After the Pokhran tests in 1998, Atal Bihari Vajpayee added Jai Vigyan to the slogan to underline the importance of science and knowledge in India’s progress.
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