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Should MSP Legalised? UPSC NOTE

 What is mandi system?

  • Agricultural Produce Market Committees is the marketing board established by the state governments in order to eliminate the exploitation incidences of the farmers by the intermediaries, where they are forced to sell their produce at extremely low prices.

  • All the food produce must be brought to the market and sales are made through auction

  • The market place i.e, Mandi is set up in various places within the states

  • These markets geographically divide the state.

  • Licenses are issued to the traders to operate within a market. 

  • The mall owners, wholesale traders, retail traders are not given permission to purchase the produce from the farmers directly.

  • Agricultural Produce Market Committee is a system operating under the State Government since agricultural marketing is a State subject.

  • The APMC has Yards/Mandis in the market area that regulates the notified agricultural produce and livestock. 

  • The introduction of APMC was to limit the occurrence of Distress Sale by the farmers under the pressure and exploitation of creditors and other intermediaries.

  • APMC ensures worthy prices and timely payments to the farmers for their produce.

  • The National Agriculture Market (NAM) is a pan-India electronic trading portal, .

  • NAM links the existing Agricultural Produce Market Committee mandis across the country to form a unified national market for agricultural commodities.

  • The e-NAM portal is a single-window service for any information and services related to APMC

  • The issue of legalizing the Minimum Support Price  for crops in India is a complex one, with arguments both for and against the farmers' demands. 

  • Whether the protests are "justified" ultimately depends on your perspective and what factors you prioritize.

Arguments in favor of the protests:

  • Livelihood security: Proponents argue that legalizing MSP would provide greater certainty and security for farmers' income, especially considering unpredictable market fluctuations. This could help lift them out of poverty and debt.

  • Fairness and equity: They believe the current system, where only a few crops and regions benefit from assured procurement at MSP, is unequal and unfair to a large portion of farmers. Legalizing MSP could level the playing field.

  • Market manipulation: Concerns are raised about the exploitation of farmers by powerful players, who can drive down prices below the cost of production. Legal MSP could act as a safety net against such exploitation.

Arguments against the protests:

  • Fiscal burden: Opponents argue that legalizing MSP for all crops could impose a significant financial burden on the government, potentially leading to inflation or higher taxes.

  • Market distortion: They suggest that government intervention in pricing could distort the market and lead to inefficiencies in the agricultural sector.

  • Implementation challenges: Concerns exist about the practical difficulties of implementing a nationwide legal framework for MSP, such as ensuring efficient procurement and storage of various crops.

Additionally, there are nuanced perspectives within both sides:

  • Some advocates for the protests acknowledge the concerns about fiscal burden and suggest alternative solutions like partial MSP implementation or linking it to production costs.

  • Some opponents recognize the need to support farmers' income but propose alternative methods like direct income transfers or improving market access and infrastructure.

  • Ultimately, the justification of the protests depends on how you weigh the potential benefits against the potential drawbacks, considering the complex economic and social factors involved.

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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Should MSP Legalised? UPSC NOTE
Should MSP Legalised? UPSC NOTE
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
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