scholarly journals Interrogating the MSP Regime, Farm Laws and Agrarian Future in India

2021 ◽  
pp. 097639962110569
Author(s):  
Pritam Singh ◽  
Shruti Bhogal
Keyword(s):  
Agricultural Marketing ◽  
Minimum Support ◽  
Support Price ◽  
The Government ◽  
Legal Right

The three new farm laws promulgated by the Government of India in 2020 as agricultural marketing reforms, with the claim that they were aimed at expanding farmers’ marketing choices and increasing their incomes, have triggered massive protests by farmers. These protests have crystallized around two key demands: first, repeal the laws and second, make the minimum support price (MSP) for procuring farmers’ produce a legal right. Given that discussions between the government and farmers’ organizations continue to be at an impasse, it is critical to understand the arguments over the laws and the MSP, and the implications of these arguments for the agrarian future of India.

Effectiveness of Auctions in Securing Price Support for Farmers: The Case of a Grain Market in India

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Neha Gupta
Keyword(s):  
Lower Cost ◽  
Secondary Data ◽  
Price Support ◽  
Minimum Support ◽  
Minimum Price ◽  
Support Price ◽  
The Government ◽  
Nonparametric Estimates ◽  
The Impact ◽  
Analyze Data

Abstract This paper reviews rice procurement operations of Government of India from the standpoints of cost of procurement as well as effectiveness in supporting farmers’ incomes. The two channels in use for procuring rice till 2015, were custom milling of rice and levy. In the first, the government bought paddy directly from farmers at the minimum support price (MSP) and got it milled from private millers; while in the second, it purchased rice from private millers at a pre-announced levy price thus providing indirect price support to farmers. Secondary data reveal that levy, despite implying lower cost of procurement was discriminated against till about a decade back and eventually abolished in 2015 in favor of custom milling, better trusted to provide minimum price support. We analyze data from auctions of paddy from a year when levy was still important to investigate its impact on farmers’ revenues. We use semi-nonparametric estimates of millers’ values to simulate farmers’ expected revenues and find these to be rather close to the MSP; a closer analysis shows that bidder competition is critical to this result. Finally, we use our estimates to quantify the impact of change in levy price on farmers’ revenues and use this to discuss ways to revive the levy channel.

scholarly journals How has the minimum support price policy of India affected cross-commodity price linkages?

2021 ◽  
pp. 1-18
Author(s):  
Luis Emilio Morales ◽  
Jean Balié ◽  
Emiliano Magrini
Keyword(s):  
Market Integration ◽  
Commodity Price ◽  
Price Policy ◽  
Price Transmission ◽  
Agricultural Commodities ◽  
Price Shocks ◽  
Minimum Support ◽  
Risk Levels ◽  
Support Price ◽  
The Government

For several decades, the government of India has implemented a minimum support price (MSP) policy for agricultural commodities to reduce price risk levels for farmers. Concerns have been raised about whether this policy could affect market integration of related agricultural products, modify price incentives, and ultimately alter resource allocation and production between commodities. This study uses a panel vector auto-regression model across six states for the period 2002-2017 to analyse the effects of the MSP on the transmission of price shocks between cereals and oilseeds. The results demonstrate that the MSP partially and completely offsets price linkages between agricultural commodities, potentially introducing distortions in price incentives that affect land allocation and production between commodities. Beyond the effects of the MSP across commodities, Indian authorities can expect that price shocks on maize be transmitted to soybean over the next production period. Finally, this study demonstrates that the use of alternative data frequencies can identify differences in market reactions over time that can be related to production cycles and delays in price transmission.

scholarly journals Farmers’ Agitation in India Due to Audacious Farm Bill of 2020

2021 ◽  
Vol 4 (1) ◽  
pp. 35-37
Author(s):  
Subhendu Bhattacharya ◽  
Utsavi Patel
Keyword(s):  
Land Reform ◽  
Crop Insurance ◽  
Safety Net ◽  
Farm Bill ◽  
Agricultural Output ◽  
Minimum Support ◽  
Indian Agriculture ◽  
Support Price ◽  
The Government ◽  
Corporate Support

Farmers are doing primary and significant duty for the society by engaging in agriculture. They are tirelessly ploughing the field, planting the seed, watering the land and yielding crops. Production of cereals, pulses, fruits and vegetable are necessary to feed people of billion plus nation and ensuring food security. It is necessity of the government to provide necessary support with legislation of law, enactment of the same, crop insurance and provision of subsidy for agricultural inputs. There should be advancement in irrigation facility, application of biotechnology, credit facility, land reform and availability of market. But new framed agricultural reform act enraged the farmers and injected fear in their mind. Farmers feel apprehensive regarding the restructuring of the Indian agriculture. There is a shadow of uncertainty about annulment of minimum support price facility. It is presumed that new farm bill would take away Mandi facility which so far gave assurance to selling of crop. Although middle men were involved in the process, farmers were sanguine about selling of agricultural output with intermediation of them. Farmers so far enjoyed crop insurance and minimum support price for agricultural output. But newly passed bill in parliament spread tension among farmers about future uncertainties. Fear and ambiguity lingered with respect to corporate support and assurance. Loss of land and livelihood to corporate also gripped the minds. Question revolved about farmers wherewithal and whereabouts if corporates fail to buy crop or agricultural output. Like majority of Indian citizen, farmers are devoid of social security measure. Corporate indifference might cause grave loss for poor farmers in the absence of safety net. But sticking to this defunct system, would result in more harm than good for Indian farmers.

scholarly journals On the Wheat Price Support Policy in Pakistan

2019 ◽  
Vol 1 (3) ◽  
pp. 80-86
Author(s):  
Muhammad Aamir Shahzad ◽  
Amar Razzaq ◽  
Ping Qing
Keyword(s):  
Financial Burden ◽  
Production Costs ◽  
Price Support ◽  
Minimum Support ◽  
Wheat Production ◽  
Support Price ◽  
The Government ◽  
The Impact ◽  
Heavy Financial Burden ◽  
Price Policies

Wheat is Pakistan's main food and strategic crop. Currently, the government controls wheat prices through a minimum support price (MSP) policy to encourage production. However, despite the increase in wheat production, input costs and output prices have been increasing over the years. This paper aims to analyse the impact of wheat support price policies. We use data from different government sources to estimate the financial implications of MSP and compare the support price policies of India and Pakistan. We find that Pakistan’s current minimum support price policy encourages farmers to produce larger quantities of wheat, but this places a heavy financial burden on the country's finances. Our results indicate that the higher MSP of wheat has made the country lose its competitiveness in the international market. Besides, we found that the cost of wheat production in Pakistan is much higher than in India. These higher production costs force the government to raise the MSP to maintain farmers' profitability. The high MSP is guaranteed by subsidizing the procurement and release of wheat, which imposes a heavy financial burden on government finances. In addition, the rise in wheat prices in recent years has also hurt consumers. Policymakers can redistribute subsidies by subsidizing wheat inputs, especially fertilizers and seeds, to reduce production costs. To this end, the best policy intervention may be to provide input subsidies rather than subsidies on purchase prices. A reduction in input costs will correspondingly reduce output prices, which will increase farmers' profitability, consumer surplus and the international competitiveness of Pakistani wheat.

scholarly journals Cash Settled Commodity Option Contracts as an Alternative to Minimum Support Price: A Mechanism to Alleviate Farmer Distress

2020 ◽  
Vol 11 (4(I)) ◽  
pp. 50-53
Author(s):  
Sree Rama Murthy Y
Keyword(s):  
Options Market ◽  
Market Prices ◽  
Put Options ◽  
Minimum Support ◽  
Option Contracts ◽  
Support Price ◽  
The Government

Cash settled commodity options is a possible alternative to create a mechanism so that minimum support prices work in reality and do not remain a paper exercise. This paper argues that the government should create a commodity options market for all minimum support price (MSP) commodities. Further option contracts should be cash settled. The government should participate by selling put options at or above the minimum support price, so that farmers can exercise the option if they find that market prices are below the minimum support price.

scholarly journals An Analytical Study of Relationship between Socio-Economic Profile and Impact of Minimum Support Price Scheme on Small Farmers of Begusarai District of Bihar

2021 ◽  
Vol 8 (8) ◽  
pp. 70-79
Author(s):  
Krishna Kumar ◽  
Syed H. Mazhar
Keyword(s):  
Low Income ◽  
Price Policy ◽  
School Level ◽  
Primary Data ◽  
Extension Agents ◽  
Small Farmers ◽  
Minimum Support ◽  
Support Price ◽  
The Government ◽  
The Impact

Minimum Support Price fixed by the government to protect the farmers against excessive fall in price during bumper production years. Questions, are being raised about the efficacy and effectiveness of the instruments of price policy specifically the Minimum Support Prices. Under these circumstances it assumes greater significance to understand the impact caused by the minimum support prices on small farmers with socio-economic scale. Total of 60 beneficiaries and 60 non-beneficiaries was selected in Teghara block of Bihar district by purposive sampling method. The primary data were collected with the help of interview schedule and the responses were recorded, classified and tabulated and appropriate statistical tools were employed. The results showed that higher percentage of small farmers were middle aged, attained middle school level education and had low income, the beneficiaries who had primary school level education with high farm experience, present near to the market and contacted extension agents had been sought to have more impacted.

scholarly journals Performance of Agricultural Regulated Markets in Tripura-A Quest for Rapid Development

2019 ◽  
Vol 8 (2S11) ◽  
pp. 3219-3228
Keyword(s):  
Economic Growth ◽  
Major Part ◽  
Rapid Development ◽  
The State ◽  
Market Regulation ◽  
Agricultural Marketing ◽  
Rural Markets ◽  
Regulated Markets ◽  
Market Practices ◽  
The Government

Regulated market occupies a place of foremost importance in the contemporary agricultural marketing scenario of Tripura. It is very much helpful for economic growth of a state and as well as for a country. At present, there are 21 regulated markets in the state of Tripura. In this state, the first regulated market was establisl1ed in the year 1964 at Bishalgarh, west Tripura. Afterward, 3 markets were regulated in 1981 and 17 markets were regulated in 1986. Since 1986, no market of Tripura has been regulated. The Government of Tripura has taken several steps to streamline the regulated market system. But, the improper functioning of most of the regulated markets and other handicaps has not changed the conditions noticeably. Still a major part of rural markets are working outside the frame of regulated market. As a matter of fact, in Tripura the structure and system of marketing and consumer distribution is mostly dominated by private traders causing a hassle in the overall development of the regulated markets. To improve the prevailing conditions of these markets, at that instant, market regulation becomes further essential. The paper overviewed the regulated markets of Tripura focusing on its present status, market practices, problems and performances. In this regard, the study basically has analyzed the physical and financial performance of regulated markets in Tripura. It provides few guidelines for the primary producers to get the best possible returns from the agricultural regulated markets. At last, some valuable suggestions have also been offered for rapid development of regulated markets in the state.

Digitalization of Agriculture in India: Pathway to Prosperity

2020 ◽  
Author(s):  
Deepali , Chadha
Keyword(s):  
Electronic Device ◽  
Electronic Market ◽  
Indian Government ◽  
Agricultural Marketing ◽  
Government Interventions ◽  
Agriculture Sector ◽  
Farming Community ◽  
Support Price ◽  
Target Consumer ◽  
High Level

Digital marketing covers all the marketing strategies that are using the internet or an electronic device. It is a new way of approaching customers. According to a recent survey, India’s digital advertising industry is growing at a rate of 33.5 per cent annually. There is a gradual rise in digitization and modernization taking place in several aspects. Agriculture sector is also identified as one of the potential sectors of digitization due to large volumes traded and a high level of fragmentation present in the supply chain. In India, a significant part of the population is engaged in agriculture. Although different modern techniques and practices have been adopted in agriculture that has undoubtedly helped to improve the production over the years, but there has been a constant challenge to provide a market for the marketed surplus and getting fair prices for the same. Agricultural marketing covers the services involved in moving a farm product to the target consumer. It has undergone numerous changes over the last few years. It has beautifully evolved from barter system to organized marketplaces to today’s electronic market platform owing to several technological changes and government interventions. Institutions such as Agriculture Produce Marketing Committees (APMC), regulated market yards, and minimum support price are instances of state support that have led to a strong primary sector. Further, development of technological and financial innovations has changed the commodity transaction pattern of the stakeholders. Digitization of transactions helps in trading large volumes and also enhances transparency and associated benefits. Different initiatives have been taken by the Indian Government to digitize the agriculture sector to help the farming community such as launching of Digital India Campaign and various mobile applications that help in increasing agriculture productivity

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