{"id":158630,"date":"2024-02-13T11:20:48","date_gmt":"2024-02-13T05:50:48","guid":{"rendered":"https:\/\/www.caravanalive.com\/?p=158630"},"modified":"2024-02-13T11:20:48","modified_gmt":"2024-02-13T05:50:48","slug":"farmers-protest-2-0-why-is-msp-a-major-demand-and-how-will-it-help-in-agriculture-sector","status":"publish","type":"post","link":"https:\/\/www.caravanalive.com\/?p=158630","title":{"rendered":"Farmers&#8217; Protest 2.0: Why Is MSP A Major Demand And How Will It Help In Agriculture Sector?"},"content":{"rendered":"<div class=\"2a6a8c3593e6620bd92d71f585bdd19b\" data-index=\"4\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6453632170035383\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- NEW RESPONSIVE -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6453632170035383\"\r\n     data-ad-slot=\"2960496911\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n<p>Farmers often operate in a buyer&#8217;s market which can lead to sudden supply increases relative to demand, putting downward pressure on prices. This means that they are price takers, lacking the market power to influence the prices of their produce.<\/p>\n<p>Farmers sell at prevailing supply-and-demand determined rates while paying retail prices for everything from seeds, pesticides, diesel, and tractors to cement, medicines, toothpaste, and soap. Farmers sometimes demand minimum support prices (MSP) for their crops, and there could be a clamour for political parties to include a \u201clegal guarantee for MSP\u201d in their manifestos as the Lok Sabha elections approach.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-158634\" src=\"https:\/\/www.caravanalive.com\/wp-content\/uploads\/2024\/02\/farmers_protest_delhi_PTI-jpg.webp\" alt=\"\" width=\"1200\" height=\"771\" srcset=\"https:\/\/www.caravanalive.com\/wp-content\/uploads\/2024\/02\/farmers_protest_delhi_PTI-jpg.webp 1200w, https:\/\/www.caravanalive.com\/wp-content\/uploads\/2024\/02\/farmers_protest_delhi_PTI-300x193.webp 300w, https:\/\/www.caravanalive.com\/wp-content\/uploads\/2024\/02\/farmers_protest_delhi_PTI-1024x658.webp 1024w, https:\/\/www.caravanalive.com\/wp-content\/uploads\/2024\/02\/farmers_protest_delhi_PTI-768x493.webp 768w, https:\/\/www.caravanalive.com\/wp-content\/uploads\/2024\/02\/farmers_protest_delhi_PTI-450x289.webp 450w, https:\/\/www.caravanalive.com\/wp-content\/uploads\/2024\/02\/farmers_protest_delhi_PTI-934x600.webp 934w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p>While most economists oppose government-fixed MSPs based on cost-plus pricing, sans any consideration to market demand, they largely believe that it is better to give farmers \u201cincome\u201d, instead of \u201cprice\u201d, support. Direct income support schemes aren\u2019t market-distorting and benefit all farmers.<\/p>\n<p>However, the flip side to everyone being paid the same money is: where does this leave the real producing farmer, who invests more resources, time, and effort in the field?<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-158635\" src=\"https:\/\/www.caravanalive.com\/wp-content\/uploads\/2024\/02\/116930570_getty_protest2.jpg.webp\" alt=\"\" width=\"480\" height=\"270\" srcset=\"https:\/\/www.caravanalive.com\/wp-content\/uploads\/2024\/02\/116930570_getty_protest2.jpg.webp 480w, https:\/\/www.caravanalive.com\/wp-content\/uploads\/2024\/02\/116930570_getty_protest2.jpg-300x169.webp 300w, https:\/\/www.caravanalive.com\/wp-content\/uploads\/2024\/02\/116930570_getty_protest2.jpg-450x253.webp 450w\" sizes=\"auto, (max-width: 480px) 100vw, 480px\" \/><\/p>\n<p>Farmers may be justified in seeking some kind of price assurance for the crop they are sowing now and harvesting a few months down the line. Price support can be a useful tool for promoting crop diversification.<\/p>\n<p>Farmers are more likely to grow pulses, millets, and other nutrient-dense, less water-intensive crops than rice, wheat, or sugarcane if they are assured of MSP on the former.<\/p>\n<p>There are two conventional ways to guarantee MSP: force buyers to pay MSP or for government agencies to buy the entire marketable produce of farmers offered at MSP. However, both of these options have their limitations.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-158636\" src=\"https:\/\/www.caravanalive.com\/wp-content\/uploads\/2024\/02\/images-8.jpeg\" alt=\"\" width=\"666\" height=\"461\" srcset=\"https:\/\/www.caravanalive.com\/wp-content\/uploads\/2024\/02\/images-8.jpeg 666w, https:\/\/www.caravanalive.com\/wp-content\/uploads\/2024\/02\/images-8-300x208.webp 300w, https:\/\/www.caravanalive.com\/wp-content\/uploads\/2024\/02\/images-8-450x311.webp 450w\" sizes=\"auto, (max-width: 666px) 100vw, 666px\" \/><\/p>\n<p>There\u2019s a third option: price deficiency payments (PDP) which entails the government not physically purchasing or stocking any crop, and simply paying farmers the difference between the market price and MSP if the former is lower.<\/p>\n<p>PDP was first tried out in Madhya Pradesh through a Bhavantar Bhugtan Yojana. The Madhya Pradesh scheme was implemented during the 2017-18 kharif (post-monsoon) season for eight crops. But despite 21 lakh-odd farmers registering and payments of about Rs 1,952 crore being made, the scheme couldn\u2019t be continued for lack of Central support.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-158637\" src=\"https:\/\/www.caravanalive.com\/wp-content\/uploads\/2024\/02\/images-10-jpeg.webp\" alt=\"\" width=\"600\" height=\"400\" srcset=\"https:\/\/www.caravanalive.com\/wp-content\/uploads\/2024\/02\/images-10-jpeg.webp 600w, https:\/\/www.caravanalive.com\/wp-content\/uploads\/2024\/02\/images-10-300x200.webp 300w, https:\/\/www.caravanalive.com\/wp-content\/uploads\/2024\/02\/images-10-450x300.webp 450w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/p>\n<p>Haryana\u2019s PDP scheme, called Bhavantar Bharpai Yojana (BBY), is being implemented mainly in bajra (pearl millet), mustard, and sunflower seed, although technically, it also covers groundnut, chana (chickpea), moong, and 16 vegetable and 3 fruit crops. BBY operates on the Haryana government\u2019s \u2018Meri Fasal, Mera Byaura\u2019 portal, in which farmers have to register themselves along with details of their land.<\/p>\n\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>Farmers often operate in a buyer&#8217;s market which can lead to sudden supply increases relative to demand, putting downward pressure on prices. This means that they are price takers, lacking the market power to influence the prices of their produce. Farmers sell at prevailing supply-and-demand determined rates while paying retail prices for everything from seeds, [&hellip;]<\/p>\n","protected":false},"author":43,"featured_media":158633,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[{"category_id":36,"category_link":"https:\/\/www.caravanalive.com\/?cat=36","category_name":"Article"},{"category_id":2,"category_link":"https:\/\/www.caravanalive.com\/?cat=2","category_name":"Business"},{"category_id":155,"category_link":"https:\/\/www.caravanalive.com\/?cat=155","category_name":"Food"},{"category_id":156,"category_link":"https:\/\/www.caravanalive.com\/?cat=156","category_name":"India"},{"category_id":137,"category_link":"https:\/\/www.caravanalive.com\/?cat=137","category_name":"News"}],"tags":[{"tag_id":3829,"tag_link":"https:\/\/www.caravanalive.com\/?tag=agriculture","tag_name":"agriculture"},{"tag_id":7610,"tag_link":"https:\/\/www.caravanalive.com\/?tag=crop","tag_name":"Crop"},{"tag_id":1052,"tag_link":"https:\/\/www.caravanalive.com\/?tag=farmer-protest","tag_name":"farmer protest"},{"tag_id":7611,"tag_link":"https:\/\/www.caravanalive.com\/?tag=farmer-protest-delhi","tag_name":"Farmer protest delhi"},{"tag_id":4784,"tag_link":"https:\/\/www.caravanalive.com\/?tag=food-security","tag_name":"FOOD SECURITY"},{"tag_id":2134,"tag_link":"https:\/\/www.caravanalive.com\/?tag=haryana","tag_name":"HARYANA"},{"tag_id":7612,"tag_link":"https:\/\/www.caravanalive.com\/?tag=minimum-support-price","tag_name":"Minimum support price"},{"tag_id":1899,"tag_link":"https:\/\/www.caravanalive.com\/?tag=msp","tag_name":"MSP"},{"tag_id":1410,"tag_link":"https:\/\/www.caravanalive.com\/?tag=punjab","tag_name":"punjab"}],"class_list":["post-158630","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-article","category-business","category-food","category-india","category-news","tag-agriculture","tag-crop","tag-farmer-protest","tag-farmer-protest-delhi","tag-food-security","tag-haryana","tag-minimum-support-price","tag-msp","tag-punjab"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Farmers&#039; Protest 2.0: Why Is MSP A Major Demand And How Will It Help In Agriculture Sector? - Alive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.caravanalive.com\/?p=158630\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Farmers&#039; Protest 2.0: Why Is MSP A Major Demand And How Will It Help In Agriculture Sector? - Alive\" \/>\n<meta property=\"og:description\" content=\"Farmers often operate in a buyer&#8217;s market which can lead to sudden supply increases relative to demand, putting downward pressure on prices. 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