Question

Minimum support price offered by the govt. is to support the farmers. However the needy farmers are not able to derive benefits from the scheme. Explore the diff. causes for the same.

Answer 1

Minimum Support Price is the price at which government purchases crops from the farmers, whatever may be the price for the crops. Minimum Support Price is an important part of India's agricultural price policy. The MSP helps to incentivize the framers and thus ensures adequate food grains production in the country.


More than a loan waiver, what farmer groups protesting in several states have been demanding is the implementation of a report prepared in 2006 by a committee headed by agricultural scientist MS Swaminathan. The key recommendation of the committee was fixing the minimum support prices for agricultural produce at 50% profits over the farmer’s cost of production.

A minimum support price is an intervention by the government to buffer farmers against sudden slumps in the market price. It is the rate at which the government buys farm produce when there are no other buyers in the market.

On the surface, the Swaminathan committee’s formula of a higher minimum support price based on the cost of production would strengthen the safety net for farmers.



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Answer 2

Most of the poor farmers are illiterate and they are not able to know about the schemes started by government. they are also not connected to world.