Unpacking the Economic Viability of Minimum Support Price

Abstract: India, primarily being an agricultural country, majority population depends on farming for livelihood. But agriculture sector has always faced a number of issues ranging from low productivity, market distortions, low prices. Efforts have been done by governments over decades to improve the conditions of farmers by introducing green revolution, agriculture produce market committees, Minimum support prices. But the policies formulated came with their own problems. While green revolution has affected the environment and MSP affecting the economy and market forces of demand and supply.

The recent huge scale farmers protest demanding legal guarantee of minimum support price has again shifted the attention on understanding the implications of MSP. This paper delves in depth to comprehand all the aspects of MSP affecting economy. Although initially MSP does benefit farmers but in long run it does not only hurts economy(deficit, inflation) but ultimately affects farmers by depressing the demands for their produce. Perhaps the fact is undeniable that farmers cannot be left on their own, the paper argues balance between economic needs of the nation and welfare of the farmers is the need of the hour.

Keywords: Minimum support price, economic feasibility, swaminathan report, agriculture inflation.

Title: Unpacking the Economic Viability of Minimum Support Price

Author: Diksha

International Journal of Recent Research in Commerce Economics and Management (IJRRCEM)

ISSN 2349-7807

Vol. 11, Issue 2, April 2024 - June 2024

Page No: 195-201

Paper Publications 

Website: www.paperpublications.org

Published Date: 13-June-2024

DOI: https://doi.org/10.5281/zenodo.11635853

Paper Download Link (Source)

https://www.paperpublications.org/upload/book/Unpacking%20the%20Economic%20Viability-13062024-2.pdf