The minimal assist value on agri crops ought to proceed so long as markets turn out to be aggressive and environment friendly, however it needs to be given via means apart from procurement, authorities think-tank Niti Aayog member Ramesh Chand stated on Wednesday.
Chand — whereas addressing a convention on ‘Getting agriculture markets right’ — organised collectively by National Stock Exchange and ICRIER — stated: “Deficiency Pricing Payment (DPP)’ is one such technique of giving MSP (Minimum Support Price) to farmers, however cautioned that DPP can’t be stopped as soon as carried out.
Under DPP, the distinction between the open market value and MSP is given to farmers, he stated, including that it has been carried out in some states like Madhya Pradesh. MSP is a minimal value at which the federal government undertakes procurement. MSP is mounted for 22-23 crops. Rice and wheat are largely procured crops by the federal government.
“In some cases, MSP is justified in times of volatility in prices and glut. I feel what matters is how we give MSP to farmers. …MSP has to be there as long as markets are not competitive and efficient. But MSP can be given through means other than procurement,” he stated.
MSP might be given via the DPP technique however it can’t be stopped as soon as it’s carried out, he stated. Chand stated he has given an in depth presentation on this to Prime Minister Narendra Modi.
He has additionally estimated that the distinction between open market value and MSP is about 12-15 per cent and it could require Rs 80,000 crore primarily based on 1920 value to offer on all MSP-fixed 23 crops.
The Niti Aayog member additionally said that allied sectors — fishery, dairy and livestock — of agriculture having minimal authorities intervention are rising on the quickest fee.
He stated a ten per cent development fee was seen within the fishery within the final eight yr. Similarly, the dairy and livestock sector has carried out higher. Within agri crops, non-MSP crops and horticultural crops have grown a lot quicker than others.
“Given this, what is likely to emerge in future is, sarkari crops (MSP-fixed crops) versus bajaari (commercial) crops,” he stated, and added that corporates are exhibiting curiosity in innovation in bajaari crops.
Countering Chand’s view on DPP technique of giving MSP, Ashish Bahuguna, former agriculture secretary, stated, “I don’t agree that there is 15-20 per cent difference between open market price and MSP. You have not taken into account farm gate prices. MSP cannot be a solution. I support farmers’ income approach and we need to address hurdles in the market places.” Bahuguna is at present the chairman and public curiosity director at NCDEX.
ITC Group Head, Agri and IT Businesses, S Sivakumar, stated, “We are in the process of transiting to a demand-response production system. The trouble we are facing today because we are still in transition. We are trying to manage today and tomorrow’s needs with yesterday’s instruments, institutions and laws.” Farm legal guidelines, which have been withdrawn, was one step in that course and definitely might have helped how one can make this transition, he stated.
In November 2021, the federal government had repealed three agricultural legal guidelines because of an almost a yr lengthy agitations of farmers on Delhi borders.
Bill and Melinda Gates Foundation Deputy Director (international development and alternatives) stated FPOs shouldn’t at all times depend upon authorities assist to turn out to be profitable and may turn out to be self-reliant.
Currently, FPOs (Farmer Producer Organisations) are going through working capital points and there’s a want to deal with this subject by getting non-public investments, she added
Source: www.financialexpress.com”