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Farmers Protest 2.0: Are Farmers Demands Unjustified?

Farmers Protest 2.0: Are Farmers Demands Unjustified?

Context: 

This editorial is based on the news “Farmers Demands are Unjustifiedwhich was published in the Business Standard. The Farmers are marching again towards Delhi with multiple demands, two years after their initial protests.

Relevancy for Prelims: Farmers Protest Highlights, Farm And Food Policy Shift, Food Subsidy, Minimum Support Price (MSP), Statutory Status To Minimum Support Price (MSP), and MSP Hike And Its Impact, and APMC.

Relevancy for Mains: Issues regarding the Agriculture sector, The analysis of providing a legal backing to the Minimum support price (MSP).

 

Farmers Protest 2.0: What Are Farmers Demands?

Some of the farmers demands are as follows: 

Also Read: Farmers Protests And North South Divide

The Rationale of the Farmers Demands As Per the Referred Article 

  • No Economic Logic: 

    • Providing a legally guaranteed price for all 23 commodities is simply impossible: The government declares MSP for 23 crops and purchases some, mainly wheat and rice, for distribution under the National Food Security Act and maintaining a buffer stock. 
    • It also intervenes in other commodities to support prices. 
  • Cost to the Exchequer: 

    • The government does not have adequate resources to do this. It is hard to arrive at a cost required for providing a legal backing to the MSP. 
  • Exclusion of Private Traders From the Market: 

    • A legal guarantee would mean every time prices go below the MSP, the government will have to procure because private traders will move out of the market. 
    • Logically, once private trade gets discouraged, prices will automatically fall.
    • In this scenario, the government may find itself compelled to procure all available goods to stabilise the market.
  • Liquidation of the Procured Stock: 

    • The manner in which the government will liquidate the procured stock is also a matter of concern.
    • There are chances of  market disruption and potential shortages in the market.
  • Crops Coverage Under MSP: 

    • Only a small proportion of agriculture and related output is covered under MSP. 
    • Even for the crops that are covered under MSP, only a small minority of farm households benefit. 
    • Some of the faster-growing commodities, such as milk and poultry, do not get support.
  • Timing of the Protest is Questionable: 

    • The Lok Sabha elections can be called anytime and laws can be passed only after the next Lok Sabha is constituted. The idea clearly is to put pressure on political parties to take these demands forward.
  • Price Guarantee is Not a One Stop Solution: 

    • According to the article in Business Standard, as per the data analysed for the agriculture year 2018-19, only 8.8 per cent of agricultural households sold any crop at MSP to government agencies
    • Further, the value of that produce was just 8 per cent of total output : crops and livestock. Thus, a price guarantee will not address the real concerns of the farm sector.

Way forward 

  • Address fundamental challenges of the Farm Sector: The farmers do face vagaries of weather and markets. Unfortunately, the challenges on the weather front will only increase with changes in the climate. It is therefore necessary to address fundamental challenges. 
  • Cash transfers to the farmers: The government is doing cash transfers to farmers to support the farm sector. The scheme can be suitably adjusted to improve its effectiveness.
  • Price stabilisation mechanism: The government can also work on a mechanism for price stabilisation, which can be used to intervene if prices go below a certain level. This will help to curb the distress selling of the farmers.
  • Avoiding curbs on exports and stock holdings: This will ensure that the farmers have the flexibility to sell their produce internationally and manage their stocks effectively. 
    • This can create a more open and competitive market, allowing farmers to access a broader consumer base and potentially receive better prices for their products. 
    • It empowers farmers to make strategic decisions in times of market fluctuations or uncertainties. 
  • Crop diversification: It is in the interests of farmers, particularly in Punjab and Haryana, to move away from water-intensive crops like paddy, which is depleting groundwater at an alarming pace and will soon become a crisis.
Also Read: A Budget Without A Vision For Agriculture

 

Prelims PYQ (2018): 

Consider the following: 

1. Areca nut 

2. Barley 

3. Coffee 

4. Finger millet 

5. Groundnut 6. Sesamum 

7. Turmeric 

The Cabinet Committee on Economic Affairs has announced the Minimum Support Price for which of the above? 

(a) 1, 2, 3 and 7 only 

(b) 2, 4, 5 and 6 only 

(c) 1, 3, 4, 5 and 6 only 

(d) 1, 2, 3, 4, 5, 6 and 7

Ans: (b)

 

Mains Question: Discuss the feasibility and economic rationale behind the farmers’ demand For legal MSP guarantee ? What alternatives can the government consider to support farmer incomes instead of a legal MSP guarantee? (15 Marks, 250 words)

 

Must Read
NCERT Notes For UPSC UPSC Daily Current Affairs
UPSC Blogs UPSC Daily Editorials
Daily Current Affairs Quiz Daily Main Answer Writing
UPSC Mains Previous Year Papers UPSC Test Series 2024

 

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 Final Result – CIVIL SERVICES EXAMINATION, 2023.   Udaan-Prelims Wallah ( Static ) booklets 2024 released both in english and hindi : Download from Here!     Download UPSC Mains 2023 Question Papers PDF  Free Initiative links -1) Download Prahaar 3.0 for Mains Current Affairs PDF both in English and Hindi 2) Daily Main Answer Writing  , 3) Daily Current Affairs , Editorial Analysis and quiz ,  4) PDF Downloads  UPSC Prelims 2023 Trend Analysis cut-off and answer key

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UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
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Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

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