1/11/2024 0 Comments Refined storage exporter priorityCan it replace subsidies in future?īoth have their own advantages and disadvantages. The Central Government has also been giving Pradhan Mantri Kisan Samman Nidhi to the farmers in the form of direct benefit transfer for the last five years. Some states have adopted the policy of direct cash transfer to farmers. According to you, should the policy of giving subsidies continue or an incentive based economic policy should be adopted. It is not only complex but also politically sensitive. Therefore, other such means should also be used which can control the negative impact of MSP.Īgriculture subsidy has been a big issue for policy makers and economists. Little implementation has been done in Madhya Pradesh and Haryana. If we need food grains other than PDS, then we need to adopt other means, like Bhavantar Bhugtan Yojana, the idea of which I had given many years ago. Government procurement of grains is also necessary because we need grains for the Public Distribution System (PDS). Secondly, what is the means of giving MSP? In our country it is mostly given through government procurement. One thing is that we should not increase the MSP so much that if the farmers can get better prices in the market, then the MSP should not harm them. Therefore, there is a need for government intervention regarding prices in the market also. If the market is competitive, farmers will get a fair price, but if production is high, the price falls despite competition. These two are not competitors of each other, but complement each other. Firstly, Minimum Support Price (MSP) is received from the government and secondly, the price is received from the market. There are two sides to the price farmers get for their produce. We cannot stop it, but the fluctuations that occur due to the nature of production and which impact farmers and consumers, we can and should reduce them with the right market policies. For this reason there is instability and ups and downs in them, which is natural. The nature of agricultural production is such that it depends heavily on weather and climate. What is your opinion on this and how should it be done? What should be the roadmap for agricultural reforms? Farmers are demanding guarantee of MSP, but you consider Bhavantar – price/cost difference as an effective policy step for farmers. This leads to huge fluctuations in crop prices which are harmful for both farmers and consumers. Edited excerpts:Īgricultural marketing is still a very complex issue. Chand has spoken about all major issues related to the agriculture sector in the country. In a long interview with Rural Voice and Rural World Editor-in-Chief Harvir Singh, Prof. Recently, his important paper has come out on Indian agriculture regarding the Green Revolution and Amrit Kaal, in which he has tried to lay out a roadmap for the future of the country's agricultural sector. Being an agricultural economist, he has written many papers and books. His imprint is always visible in the determination of agricultural policies of the country. NITI Aayog member Professor Ramesh Chand is a world-renowned agricultural economist. For the last 10 years, our growth in agricultural productivity has been higher than that of China and America, hence the yield gap has started reducing. Ramesh Chand, states have greater responsibility towards the agricultural sector, they should make laws according to their circumstances.
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