06 February 2025 : Daily Answer Writing
Q1) ‘Wider MSP guarantee can nudge farmers to diversify beyond paddy and wheat, bolster incomes and consumption’. Do you agree? Justify with suitable arguments. (150 Words/10 Marks)
Answer:
Minimum Support Price (MSP) is the rate at which the government purchases certain crops from farmers. MSP is decided based on the recommendations of the Commission for Agricultural Costs and Prices (CACP).
Negative impacts of the current Minimum Support Price (MSP) regime:
1. Skewed Cropping Patterns:
- Area under cultivation of rice and wheat increased ~50% and ~250% respectively since Green Revolution [excess wastages in rice & wheat + shortages of pulses, oilseed & coarse grains];
- MSP incentivises farmers to grow only the crops which are procured through MSP;
- achieved food security but undermined nutritional security.
- Regional disparity – MSP is seen in favour of Punjab, Haryana, etc. leaving out majority of India [MP, Punjab, and Haryana account for 85% of wheat procurement].
- Does not take into consideration, the difference in cost of cultivation in various states
- Ecological imbalance:
- resulted in cultivation of water-intensive crops like rice and sugarcane – exploitation of groundwater resources + affected the water availability;
- soil degradation – some crops preferred irrespective of soil condition;
- excessive use of fertilisers leading to soil degradation, eutrophication, and imbalances in niche biodiversity.
- Subsidies for MSP create fiscal burden for government. Trade-distorting nature of subsidies create challenges in trade negotiations at WTO and deter private investments in the agriculture sector.
Wider MSP guarantee can serve as a catalyst for farmers to diversify their crops beyond traditional staples because:
- Income Security: (a) MSP provides a safety net (guaranteed procurement at MSP) despite market fluctuations which allows farmers to experiment and invest; (b) crop diversification leads to higher incomes [tapping high-value products such as oilseeds and fruits]; (c) crop diversification will lead to spreading of risks over varied crops + increased value-addition, thereby, boosting agro-processing industries, hence, enhancing farm incomes;
- Benefits for Consumers: (a) MSP can lead to market and price stability; (b) nutritional security – increased production of nutrient-rich crops leading to diversified food basket; (c) increased investment + willingness to experiment will lead to increased availability of organic products; (d) increased agro-processing will lead to availability and variety of off-the-shelf products for the consumers.
- Ecological Security: (a) crop rotation and diversification contribute to better soil health and fertility + reduced use of fertiliser maintains nutritional balance; (b) diversification to less
water-dependent crops can significantly reduce the stress on water resources + promoting sustainable agricultural practices; (c) it also reduces farmers overall vulnerability to climate change.
For more such IJPSC related Mains Answer Writing, Check Out – 04 Februar 2025 : Dail Answer Writing
