Minimum Support Price (MSP) as the sole source of growth in Farmers’ Income is not all sufficient. A strategy focused on diversification and technology-based value chains in agriculture is needed to double farmers income. Discuss.

Topic: Issues related to direct and indirect farm subsidies and minimum support prices; Public Distribution System- objectives, functioning, limitations, revamping; issues of buffer stocks and food security; Technology missions; economics of animal-rearing.

4. Minimum Support Price (MSP) as the sole source of growth in Farmers’ Income is not all sufficient. A strategy focused on diversification and technology-based value chains in agriculture is needed to double farmers income. Discuss. (250 words)

Difficulty level: Moderate

Reference: Indian Express

Why the question:

Situation Assessment Survey (SAS) of agricultural households conducted by the National Statistical Office (NSO). As per this survey, an average agricultural household earned a monthly income of Rs 10,218 in 2018-19 (July-June) in nominal terms.

Key Demand of the question:

To write about need to focus on diversification and technology-based value chains to double farmers income.

Directive word: 

Discuss – This is an all-encompassing directive – you must debate on paper by going through the details of the issues concerned by examining each one of them. You must give reasons for both for and against arguments.

Structure of the answer:

Introduction: 

Begin by writing about the ambitious goal of doubling farmers income.

Body:

First, write the drawbacks of MSP which is not sufficient to improve farmers income.

Next, write about diversification – Increase in productivity of crops, Increase in production of livestock, intensity and Diversification towards high value crops etc.

Next, write about technology-based value chains leading to Improved price realization by farmers.

Conclusion:

Conclude with a way forward to double farmers income whilst including recommendations of Ashok Dalwai committee.