A study of Minimum Support Price Trends & Issues in India

Abstract:

The central government has implemented the Minimum Support Price Policy to provide a reasonable price to the farmers from their farms. The government had adopted the Minimum Support Price Policy to supply the food grains that were in short supply due to the Green Revolution in 1960. While deciding this policy, the government considered all aspects of the farmers, but the needs of the farmers were confused, will the goods produced by the farmers in large quantities get a fair footing? This question was before the farmers. The farmers felt that the farmers should get the minimum cost of production for the goods produced by the farmers. To resolve the problems of the farmers, the government appointed a committee under the chairmanship of L. K. ZA in August 1964. This committee submitted its report to the government. The government implemented the recommendations of this committee and accepted the Minimum Support Price from 1964. World Wide Any country implements the Minimum Support Price Policy at the international level and no laws have been made to determine the support price. If we consider developed countries, we see that in America, agricultural products are insured to help farmers, and 80% to 90% of the cost of this insurance is borne by the government. If there is a drought in the country, the government purchases agricultural products from farmers through government agencies at the fixed price of agricultural products. According to international rules, any country can provide 90% subsidy of its agricultural production GDP, in European countries, subsidies are given to farmers on the condition of eco-friendly farming. In China, farmers are given subsidies for seeds, water, and agricultural equipment. In the United States, income support is given to farmers, that is, a certain amount is given to farmers. India and 54 other countries in the world only provide subsidies to farmers.