'Freezing of MSP for a few years should be considered seriously' Give appropriate reasons in support of the statement
Answers
Answer:
MSP is the minimum support price given to farmers in exchange for grains by the govt, sort of like wages.Increasing MSP would encourage farmers for more production. But too much of production might make storage difficult and a surplus might go to waste.So the govt must consider 'freezing' or in other words not increasing the MSP so that there isn't too much surplus.
Explanation:
Answer:
The following are main reasons:
1. Inflation.
2.Encouragement of creativity and entrepreneurship.
3.Fiscal Responsibility.
Explanation:
For the following reasons, freezing the Minimum Support Price (MSP) for a few years should be seriously considered:
1. Inflation: Farmers today face increasing production expenses as the cost of agricultural inputs such as labour, seeds, and fertiliser has increased over time. But, it's probable that the MSP fell behind the rise in input prices, which led to a reduction in farmers' real income. After a few years of MSP freezing, farmers will have access to a more fair and long-lasting price structure as input costs can adapt and stabilise.
The government provides MSP as a price support tool to entice farmers to grow certain crops, hence boosting crop variety. Yet, this frequently results in the overproduction of certain crops, which leads to surpluses and declining prices. By encouraging farmers to cultivate various crops, a frozen MSP would foster crop diversity and a more sustainable agricultural industry.
2. Encouragement of creativity and entrepreneurship: If MSP is frozen, farmers may have the opportunity to be more innovative and enterprising. It might motivate them to look into new markets, use cutting-edge methods, and incorporate new technologies in order to boost their income and sustainability.
3. Fiscal responsibility: The MSP covers a sizable portion of government agricultural spending. The MSP could be frozen by the government to reduce spending and free up funds for other urgent agricultural needs like infrastructure, storage, and irrigation.
As a result, considering freezing the MSP for a few years should be given significant consideration. By doing this, farmers may be inspired to embrace sustainable agricultural practises, diversify their crop yields, boost entrepreneurship, and free up government funding for other important agricultural industries.
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