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Index Linked Vis-a-Vis Cost of Production Linked Minimum Support Price: A Case of Paddy In Punjab
The farmers’ associations in India, particularly from the wheat and paddy producing regions, have been demanding the linking up of minimum support price (MSP) to the price index. The Commission for Agricultural Costs and Prices (CACP), however, has been determining the MSP, inter-alia, on the basis...
| المؤلف الرئيسي: | |
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| التنسيق: | Journal Article |
| منشور في: |
MAN AND DEVELOPMENT
2011
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| LEADER | 02391nam a22001217a 4500 | ||
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| 999 | |c 121137 |d 121137 | ||
| 100 | |a Ghuman, Ranjit Singh, Rangi, P.S. and Sidhu M.S. |9 49549 | ||
| 245 | |a Index Linked Vis-a-Vis Cost of Production Linked Minimum Support Price: A Case of Paddy In Punjab | ||
| 260 | |c 2011 |a MAN AND DEVELOPMENT | ||
| 300 | |b Volume 33, No.1 March 2011 | ||
| 520 | |a The farmers’ associations in India, particularly from the wheat and paddy producing regions, have been demanding the linking up of minimum support price (MSP) to the price index. The Commission for Agricultural Costs and Prices (CACP), however, has been determining the MSP, inter-alia, on the basis of cost of production. This paper examines the issue from both the stand points. It has been found that if the MSP of paddy was linked with the whole sale price index (WPI), with 1961-62 as the base year (the popular demand of farmers’ associations), the farmers of Punjab would have received an additional sum of Rs. 20285 crore during 1967-68 through 2007-08. If the base year is shifted to 1970-71, the corresponding additional sum would have been Rs. 15006 crore during 1970-71 through 2007-08. However, the farmers would have suffered a loss to the tune of Rs. 8859 crore, during 1981-82 through 2007-08, had the MSP of paddy been linked to WPI, with base year of 1981-82. On the base year of 1993-94, WPI linked MSP would have given an additional sum of Rs. 3915 crore to the Punjab farmers during 1993-94 through 2007-08. If the MSP of paddy were linked to the input price index, the Punjab farmers would have suffered a loss to the tune of Rs. 8910 crore during 1982-83 through 2006-07. It has also been found that the cost of production (C2 Cost) linked MSP has always been higher than the C2 Cost during 1981-82 through 2005-06. It is, thus, clear that linking MSP with the WPI has not been beneficial to farmers as we shift the base year to 1981-82. Nevertheless, the CACP must take WPI into consideration while fixing the MSP. There is also a need to periodically review and revise the list of determinants of the MSP so that the farmers get remunerative prices of their produce. In view of the food security and the strategic importance of agriculture the remunerative prices of agricultural produce are imperative | ||
| 942 | |c JA | ||
| 952 | |0 0 |1 0 |4 0 |7 0 |9 117886 |a MGUL |b MGUL |c JA |d 2017-01-18 |l 0 |r 2017-01-18 |w 2017-01-18 |y JA | ||