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Allana Management Journal of Research

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Pages: 56-61

Date of Publication: 30-Nov--0001

Minimum support price one of the measures to overcome problem of farmers suicide and loan waiving

Author: Dr. Yuvraj Rajaram Thorat

Category: Human Resource Management

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Abstract:

Huge number of agriculturists in Maharashtra have conferred suicide because of different reasons like shortage of rain, disappointment of harvests, re-sowing, obligation made because of different cultivating and residential costs and so on. Legislature of India has taken numerous activities to ensure agriculturists against every one of these issues Minimum Support Price (MSP) is one of them. This examination paper disks least help value, its authentic foundation. It calls attention to the centrality of execution of least value police as one of the measures to beat issue of agriculturists__ampersandsign#39; suicide and advance forgoing.

Keywords: MSP, CACP

Full Text:

Minimum support price one of the measures to overcome problem of farmers suicide and loan waiving.

Dr. Yuvraj Rajaram Thorat

Vice Principal,

Appasaheb Jedhe Mahavidyalaya Pune.

yuvrajthorat2012@gmail.com

Mob: 9890662293

  1. Abstract

Huge number of agriculturists in Maharashtra have conferred suicide because of different reasons like shortage of rain, disappointment of harvests, re-sowing, obligation made because of different cultivating and residential costs and so on. Legislature of India has taken numerous activities to ensure agriculturists against every one of these issues Minimum Support Price (MSP) is one of them. This examination paper disks least help value, its authentic foundation. It calls attention to the centrality of execution of least value police as one of the measures to beat issue of agriculturists__ampersandsign#39; suicide and advance forgoing.

Watchwords: MSP, CACP

Objectives of the study

  1. To Study the historical background and significance of Minimum Support Price in India.
  2. To study the crops covers under minimum support price.
  3. To know the prices determined for crops covered under minimum support price.
  4. To suggest measures to overcome problem of farmers__ampersandsign#39; suicide and loan waiving.

Presentation

In India agriculturists are confronting numerous issues, for example, obligation destitution, suicide and so on. So as to take care of the issue Government is accompanying diverse arrangements, for example, advance deferring. However advance forgoing is itself an issue before Government since it will put trouble on government treasury. Another such arrangement is MSP. In acknowledgment of the significance of guaranteeing sensible deliver costs to the ranchers, spurring them to embrace enhanced innovation and to advance venture by them in cultivate endeavors, the Agricultural Prices Commission (renamed as the Commission at Agricultural Costs and Costs in 1985) was built up in 1965 for exhorting the Government on farming costs approach on a proceeding with premise. It is an idea which helps the legislature by mediating with the forcefully falling costs of any item in the market. The principle target of MSP is to stay away from misfortunes of ranchers by giving them least cost for their wares. The MSP framework set up a story cost to a product which gives a base cost to the farmers.MSP is a type of market intercession by the Government of India to guarantee rural makers against any sharp fall in cultivate costs. It is an essential piece of India__ampersandsign#39;s farming value strategy. MSP are declared by the Government of India toward the start of the sowing season for specific products on the premise of the suggestions of the Commission at Agricultural Costs and Costs (CACP).

Approach

The examination think about depends on auxiliary information which is gathered from Press Information Bureau Government of India and books on Indian Economy composed by prestigious writers said in the reference.

Yields secured under Minimum Support Price (MSP)

MSP are reported for items including seven oats, for example, Paddy, Wheat, Barley, Jowar, Bajra, Maize and Ragi and five heartbeats to be specific Gram, Tur, Moong, Urad and lentil. Different products are Oilseeds, Groundnut, Mustard, Sarsoon, Soyabean, Sunflower seed, unpleasant cotton and so forth.

The Minimum Support Prices (MSPs) for 10 Kharif Crops of 2016-17 are as follows.

Table 1: The Minimum Support Prices (MSPs) for 10 Kharif Crops of 2016-17.

Commodity

Variety

MSP for

2015-16 Season

MSP

Recommended for

2016-17 Season

Rs/ Quintal

Rs/ Quintal

Paddy

Common

1410

1470

Grade A

1450

1510

Jowar

Hybrid

1570

1625

Maldandi

1590

1650

Bajra

-

1275

1330

Maize

-

1325

1365

Ragi

-

1650

1725

Tur (Arhar)

-

4625 (includesRs.200/-Bonus)

5050 (includes Rs.425/-Bonus)

Moong

-

4850 (includes Rs.200/-Bonus)

5225 (includes Rs.425/-Bonus)

Urad

-

4625 (includes Rs.200/-Bonus)

5000 (includes Rs.425/-Bonus)

Soyaben

Yellow

2600

2775 (including Rs 100/-Bonus)

4030

4220 (includes Rs.100/-Bonus)

Groundnut-in-shell

-

Source: Press Information Bureau Government of India

Advantages of appropriate execution of MSP

Least Support Price (MSP) framework if received legitimately might be a decent option for Farmers advance forgoing. Following are the advantages of MSP

Confirmation of least cost

Due to MSP ranchers get decent lot for their create. This encourages them cover the base sum costs in developing the products and pay of the obligations which they have.

Control of costs

The MSP framework goes about as a device for the administration to control sharp fall and ascend in the costs of any products. This helps keep a story value which does not give the costs a chance to fall underneath a specific point. This can likewise be utilized as a device to control expansion by method for rising costs.

Inspiration for ranchers to develop crops which are hard to come by

MSP likewise enables government to control the development of yields which are low underway. The administration can offer more value bolster for these products so an ever increasing number of agriculturists are enticed to develop these harvests with an affirmation that they will recuperate a specific sum from the legislature with ensure.

Supportive for beneath neediness line individuals

The legislature can utilize these yields to be sold at government reasonable value shops at a value lower than showcase rate. This will likewise help the legislature in making these products accessible to the underneath neediness line individuals at a lower cost.

Load on banks due credit deferring

The money related framework assumes a key part in the smooth working of the Indian economy. It is imperative that these foundations don__ampersandsign#39;t flop as they are significantly keep running on stores secured by open on the loose. If there should arise an occurrence of postpone off of advances these make a substantial weight on the banks/budgetary establishments. These forgo offs frequently prompt abandonment of banks. This specific issue can likewise be tackled with the assistance of MSP.

Negative marks of MSP

Impact on little and medium scale ranchers

As indicated by considers, the majority of the dry spell influenced ranchers are little and medium scale agriculturists. These ranchers don__ampersandsign#39;t acquire credits from money related organizations. They lean toward credits from private cash banks which are not secured under MSP plans.

Demoralizing rivalry

Any obstruction by the administration in value obsession lessens the opposition. This influences the specialists who acquire the yields at bring down costs and offer them at higher costs and win benefits.

Conclusion

Least Support Price (MSP) is one of the imperative apparatus through which agriculturists issues, for example, destitution, obligation and suicide can be unraveled. As of late a few states like Maharashtra has started credit postponing for ranchers yet this is a transient measures which will additionally make issues. One of the impediments of MSP is that any obstruction by the legislature in obsession of cost will decrease the opposition. Be that as it may, legitimate execution of MSP will ensure agriculturists and the general population who are underneath neediness line. It will enable government in controlling costs of rural items and furthermore to rouse ranchers to take creation of those wares which are hard to come by.

Reference:

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  2. A. N. Agrawal, Indian Economy-Problems of Development and arranging, New Age International Publishers, Delhi, 2006.
  3. M. Maria John Kennedy, Challenges of Indian Economy in the post Liberalization Scenario, The Associate Publishers,Delhi,2009.
  4. Ruddar Datt and K.P.M,Sundaram, Indian Economy, Sultan and chand and friends Ltd.,New Delhi,2007.
  5. T.C.Sharma,India An Economic and Commercial geology, Vikas Publishing House Pvt.,Ltd.,New Delhi,2003.
  6. Uma Kapila, Indian Economy Since Independence, Academic Foundation, New Delhi,2006.