INDIA
Are farmers reluctant to diversify beyond paddy and wheat?
The reason for the agitation by Punjab’s farmers is a desire to reduce area under paddy but still earn similar income from other crops Siraj Hussain and Kriti Khurana
BUSINESS
MSP continues to be important for India’s food security
As wheat and rice are distributed to 81.35 crore people under the National Food Security Act 2013, the government needs to procure sufficient quantities of the two food grains. The decision to give a handsome increase in MSP of Rabi crops of 2023-24 should be seen in this light
BUSINESS
Government has limited options to address crash in prices of tomato, other perishables
Not having much choice, the government resorts to the Essential Commodities Act to impose stock limits. Going forward, the presence of farmer producer organisations and cooperatives can help by setting up small cooling chambers in the producing areas. Linking them to urban markets can boost farmers’ price realization to some extent
BUSINESS
In real terms, MSP increase has been moderate in both UPA & NDA governments
The management of food inflation has been much better during the NDA government and despite the Covid-19 pandemic and the global crisis in the wake of the Russian war on Ukraine, it has been able to hold the inflation at 5.1 percent vis-à-vis 8.1 percent average inflation during the UPA regime.
BUSINESS
How effective were agriculture development funds announced in Budgets
The role envisaged for the Union government in these funds is limited to helping the creation of an ecosystem that supports long-term debt financing through priority sector lending
