Other than wheat, the following crops have seen an increase in MSPs: gram, barley, masur, mustard, and safflower. These crops are produced in large quantities in the states holding the elections next month. The top three states in terms of output are Madhya Pradesh, Rajasthan, and Telangana. Barley and mustard are produced in the highest quantities in Rajasthan. Major producers of wheat are also Rajasthan and MP.
Source: AffairsCloud.com
Higher agricultural prices are on the agendas of all parties since farmer misery is a significant election issue in every state. The Congress has pledged to provide Rs 2,600 if it wins power, despite the government having set a support price for wheat of Rs 2,275.
The most significant rabi crop, wheat, has seen the biggest price spike. With the exception of barley, which saw a jump of 6.6%, the price increases for other crops vary from 1.9% to 3.6%, while the wheat MSP has increased by 7%. For the last nine years, the average increase in wheat MSP has been between Rs 40 and Rs 110; however, this year, the increase is Rs 150.
Additionally, the high MSP is meant to guarantee that there is enough wheat purchased and stocked in the warehouses. Right now, wheat holdings are just above the required minimum. The poor monsoon and the possible effects of El Nino have raised concerns about the rabi crop. Food prices are already very high. Low procurement and a bad harvest will maintain the price momentum.
Source: Drishti IAS: English
The government does not want to gamble with prices ahead of the general election since food inflation can lead to general inflation as well.Although the prices of other crops have increased more than wheat’s over the last ten years overall, the government has strayed from its goal of encouraging crop diversity by placing a disproportionate amount of emphasis on coarse grains and oil seeds this year.Even though they do not all cast ballots as farmers, farmers make up the largest voting bloc in the nation.
The farmers’ demonstrations against the new 2020 farm legislation have given the administration a specific incentive to appease them. Without a doubt, farmers should receive fair compensation for their produce; nevertheless, this compensation shouldn’t be limited to political gestures. It should be mentioned that most states have poor procurement systems, and the MSP is not protected by law.
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