spot_img

HinduPost is the voice of Hindus. Support us. Protect Dharma

Will you help us hit our goal?

spot_img
Hindu Post is the voice of Hindus. Support us. Protect Dharma
21.4 C
Sringeri
Wednesday, October 16, 2024

MSP distorts market prices of farm produce, planting decisions of farmers

The Centre’s Minimum Support Price results in overproduction of farm produce and limited demand for imports besides distorting market prices of the produce and planting decisions among the farming community, said United States Trade Representative’s 2022 National Trade Estimate Report on Foreign Trade Barriers (NTE Report).

The report provided a comprehensive review of significant foreign barriers to the US exports of goods and services.

Besides MSP, Bharat provides a broad range of assistance to its large agricultural sector, including credit subsidies, debt waivers, crop insurance, and subsidies for inputs (such as fertilizer, fuel, electricity, and seeds) at both the central government and State government levels.

These subsidies, which are of substantial cost to the government, lower the cost of production for Bharat’s producers and have the potential to distort the market in which imported products compete, it added.

Producers of 25 agricultural products benefit from the government’s Minimum Support Price (MSP) scheme, which helps ensure that farmers receive minimum prices that are announced before the planting season, the report said.

Rice and wheat account for the largest share of products procured under the MSP program and are typically distributed through the government public distribution system.

“In addition, in certain years and for specific products, states have provided additional incentives in the form of ‘bonuses’ above the MSPs announced by the Government of India,” the report said.

Also, the Bharatiya government procures pulses and oil seeds when market prices typically fall below the MSP, it added.

(The story has been published via a syndicated feed with minor edits to conform to HinduPost style-guide.)

Subscribe to our channels on Telegram &  YouTube. Follow us on Twitter and Facebook

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest Articles

Sign up to receive HinduPost content in your inbox
Select list(s):

We don’t spam! Read our privacy policy for more info.

Thanks for Visiting Hindupost

Dear valued reader,
HinduPost.in has been your reliable source for news and perspectives vital to the Hindu community. We strive to amplify diverse voices and broaden understanding, but we can't do it alone. Keeping our platform free and high-quality requires resources. As a non-profit, we rely on reader contributions. Please consider donating to HinduPost.in. Any amount you give can make a real difference. It's simple - click on this button:
By supporting us, you invest in a platform dedicated to truth, understanding, and the voices of the Hindu community. Thank you for standing with us.