Are farmers getting benefits of MSP, doubts Survey

Economic Survey today expressed doubt whether small and marginal farmers are getting the benefits of a sharp jump in the support price of various crops.

"Inability of a large number of small and marginal farmers to directly access the agri-market puts a question mark on increases in Minimum Support Price (MSP) actually benefitting such farmers," the survey, which was tabled in Parliament today, said.

According to government estimates, small and marginal farmers, which owns less than five hectares of land each, are about 80 per cent of the about 60 crore farming population in the country.

The MSP of paddy (rice) has been increased to Rs 1,000 a quintal (including Rs 50 bonus) for 2009-10 from Rs 560 a quintal in 2004-05. Similarly, there has been about 72 per cent hike in wheat MSP in last five years and currently stands at Rs 1,100 a quintal.

The MSPs of pulses have been hiked significantly from Rs 1,390 to Rs 2,300 in tur (65 per cent rise), Rs 1,410 to Rs 2,760 in moong (96 per cent) and Rs 1,410 to Rs 2,520 in urad (79 per cent) during last five years.

Among oilseeds, the MSPs of soyabean and groundnut have seen a rise of 50 per cent and 40 per cent, respectively while that of mustard has gone up by mere eight per cent in last five years.

The findings in the survey assumes significance as the government has been attributing that significant hike in MSP of crops as one of the factors for the prevailing high prices of essential commodities.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

FC NEWSLETTER

Stay informed on our latest news!

EDITORIAL OF THE DAY

  • Opportunity to cash in on US, Europe sanctions against Iran

    You choose your friends but not your neighbours.

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Urs Schöttli

Japan’s living national treasures

While the world is fascinated by the economic “miracles” in ...

Robert Clements

Cherish good times and accept bad ones

Initially, I was angry and confused, I was even repentant…,” ...

Bubbles Sabharwal

Mothers just see things differently; they can’t help it

Before we begin on mothers, I have to share this ...