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Conclusion for minimum support prices project

Dear Student,

Minimum Support Price is a policy to insure the agricultural producers against the fall in farm prices. MSP is the price fixed by the government.
The conclusion for Minimum Support Price Project is that it resulted in the food surplus in many states. MSP is leading to regional imparity in incomes as it is effective only in few states. It provided a competition to traders. This MSP project has also eliminated exploitation of small and marginal farmers. It showed some good results but still require improvements such as in technologies, strong network of marketing etc. Warehousing facilities should also be improved. Farmers should be made proper aware of all these kind of policies.
For further assistance take the help of your subject teacher.

Thanks and Regards

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1. There is a need to adopt a more scientific approach to agriculture and allocate higher budget in research to boost productivity per hectare.
2. The NITI Aayog has advocated for timely dissemination of information via the Krishi Vigyan Kendras(KVK s) and also to announce MSP s well ahead of the sowing season.The criteria for fixing prices for MSP must be current costs rather than a historical basis.
3. There needs to be a complete overhaul of procurement procedures and more focus must be on local procurement especially at the panchayat level.
4. Use of modern warehousing infrastructure is needed like modern storage facilities, weighing bridges etc. to extend shelf life and prevent rotting of grains.
5. The Shanta Kumar committee recommendations for the overhaul of FCI must be implemented in Toto and also the suggestion of the National Commission of farmers ( Dr.MS Swaminathan committee, 2007 ) to fix the MSP at cost of production + 50% so as to have a definitive roadmap for fiscal expenditure and better remunerative output for farmers rather than ad hoc methods.
6. Farmers must be made to understand the benefits of crop diversification so as to produce more pulses to ensure nutritional security and prevent supply-side shocks.
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