Volume : IX, Issue : III, March - 2019

Minimum Support Prices in India

Dr. Meenu Jain

Abstract :

MSP is a tool which gives guarantee to the farmers, prior to the sowing season, that a fair amount of price is fixed to their upcoming crop to encourage higher investment and production of agricultural commodities. The Minimum Support Prices are announced by the Government of India for the first time in 1966–67 for wheat in the wake of the Green Revolution. At present the Government of India covers 24 commodities including Statutory Minimum Prices for sugarcane. The initial philosophy behind this was the adoption of the new technology and becoming self –sufficient in foodgrains .Recently, the Cabinet Committee on Economic Affairs has announced a substantial increase in the minimum support price of crops.It is considered that an increase in MSP will give a major boost for the farmers‘ income .Bhavantar Bhugtan Yojana (BBY), a price deficiency payment (PDP) scheme will also lessen the farm distress as it is easy and simple method . Further ,to incentivise cultivation of pulses and oilsedds ,Government has announced a bonus which is payable over and above the approved MSP .It is argued that a rise in MSP would be beneficial only to tiny section of farmers as most of them have to sell their production to moneylenders in the villages to repay their loans .What is required is to provide subsidised inputs ; cheap credit facility ; development of rural infrastructure and generation of rural employment opportunities . In this light ,this paper focuses and analyses the effevtiveness of MSP as a supportive mechanism in India

Keywords :

Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

MINIMUM SUPPORT PRICES IN INDIA, Dr.Meenu Jain INDIAN JOURNAL OF APPLIED RESEARCH : Volume-9 | Issue-3 | March-2019

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