Question

different problem associated with minimum support price​

Answer 1

Disadvantages of MSP

Less than 6% of farmers sold their produce at the minimum support price. According to a survey by National sample survey many small and marginal farmers are unaware of the concept of minimum price and the benefits are taken away by large farmers.

Yield per hectare is the lowest among economies with a large agriculture sector. Hence agriculture productivity needs to improve, for that MSP alone is not enough we need a wide range of interventions.

Even though recently the MSP for pulses has increased drastically there is no visible correlation between higher MSP and area under pulses.

In order to meet the obligations under the National Food Security Act (NFSA, 2013) mostly only paddy and wheat are procured regularly and in bulk by the Government agencies. For all others the procurement is irregular so there is no incentive or bankability for the farmer to produce other crops.

As MSP is declared by the Union Government most of the States do not have the funds to procure crops at rates announced by the center.Eg: In Assam due to budgetary constraints procurement was not carried out for the past two seasons.

Since the MSP are announced just before the sowing season many of them would have already started the exercise by then so, in reality, the Minimum Support Price has a limited ability to change or have a significant impact on the cropping pattern.

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Answer 2

Answer:

Various problems are

1. Crop production
2. Msp have unequal access
3. market distortion
4. ecological problem
5. Issues related to WTO
6. Excess storage

hope it will help