Minimum Support Price (MSP) announcement- Is that a sufficient Support ?


  • With the announcement of MSP, provisions of bonus is also kept to encourage the farmers.
  • Along with these ,it is required to provide an opportunity to the growers  for access to good quality seeds and other inputs require in production.
  • The access to better inputs will increase the confidence in the farmers to go for increasing the sown area
  • Further, there should be availability of significant number of ware house/stock houses to ensure stocking of  all  farmers produce which is intended for sale by the farmer
  • The stocking of farmers produce against the MSP should not only be Central duty rather the state govt. should also have to come forward in Central procurement .

    Minimum Support Price (MSP) announcement
    Minimum Support Price (MSP) announcement
  • The best way is , the farmer should make their own storage /ware house for storage of their harvested produce .This way the farmer can sale according to the market and they don’t have to depend on the middle man  for marketing of their produce
  • Along with this, it is equally important to emphasis on  market stabilization. The govt. machineries should intervene in the issue like  price stabilization. A check should put on market manipulation, black marketing and even any unwanted political  foul playing .


Minimum Support Price (MSP)-The Realities

  • Even in conditions when prediction  says that   a good  monsoon is doubtful ,even then an announcement of high MSP  encourages to go for more net sown area
  • With a hike announced in MSP, the farmers are confident enough to get good price of their produce .
  • But the hidden reality is that the govt. don’t have arrangements for sufficient numbers of stock/ware houses  to collect the produce of all
  • So, most of the time the  government fails to procure the produce
  • In absence of suitable Govt. infrastructure, the farmer  at last bound to sell the produce  at a price much lower than announced MSP. This way farmers has to bear the  loss
  • In this process, the local farmers gets in to the trap of the local traders .The local traders makes the profit .This way the market get destabilize and hence there is price fluctuation
  • In absence of getting fair prices , the  farmers, if given option are ready to quit farming.
  • The markets are not mature and hence 100% can’t be left over to the market . The govt. intervention is must . So a right balance between govt. role and market has to be maintained


Minimum Support Price (MSP)-How it can really Support?

  • A Proper calculation on MSP should be done considering the involvement of the farmers organization. Until and unless the right representation of farmers organization is there , it is hard to achieve the right support to the farmers.
  • Govt announces the MSP but not give any assurance /guarantee of purchasing. So, MSP should be announced with an assurance of purchasing by the govt.
  • Announcement of MSP with Assurance of Purchasing is also required to prevent local traders from destabilizing the market
  • The Market yard, most of the time remains closed. The market yard in general are located far away from farmers place .It’s important to set a agency like cooperative agency  for facilitating the marketing.
  • A better coordination between state and central govt can further help in increasing the capacity of storage
  • Along with announcing MSP , It is important give thrust on its proper regulation



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