Does Economic Survey mean what Budget 2024 may carry MSP?

The 2023-2024 Economic Survey tabled by Finance Minister Nirmala Sitharaman stated that the Minimum Support Price (MSP) has“incentivised crop diversification” The study clarified the favorable influence of MSP on the general market prices of all the plants.

Many think that the reference of MSP meant the type of method the federal government will certainly take in the direction of the farming field. “Promoting crop diversification towards oilseeds, pulses, and horticulture requires addressing critical issues such as investment in agri-infrastructure, credit accessibility and appropriate market institutions,” the study reviews.

“MSP has incentivised crop diversification and there is evidence that MSP has a positive and statistically significant effect on retail prices of all crops, with a stronger effect for those crops where procurement is substantial, such as paddy and wheat.,” it advanced.

With this, the study recommended that initiatives have to be made to motivate manufacturing patterns and techniques in different locations “that are consistent with their agro-climatic characteristics and natural resources.”

Agriculture can be the development engine

The Economic Survey concentrated on the farming field, explaining it as “one area ripe for and in need of a pan-India dialogue.”

“Agriculture and farmers matter for a nation. Most countries understand that. India is no exception. India subsidises its water, electricity and fertilisers. The former two are provided virtually free. Their incomes are not taxed,” it claims.

It concerns keep in mind that the federal government uses a Minimum Support Price (MSP) for 23 chosen products. Not just this however month-to-month money assistance is provided to farmers with the PM-KISAN plan.

Hence, the study specified that a “panoply of policies by national and sub-national governments — working at cross-purposes with each other is hurting farmers’ interests, destroying soil fertility, depleting groundwater, polluting rivers and the environment with nitrous oxide emissions, starving the crops of nutrients and undermining people’s health with a diet rich in sugar and carbohydrates rather than fibre and protein. “

Opposition demands ’legal guarantee’ for MSP

Soon after the economic survey was released, Congress general secretary-in-charge Jairam Ramesh demanded a legal guarantee for MSP.

“India is in its most precarious and difficult economic situation in many years. The Economic Survey 2023-24 might present a cherry-picked view of the economy, but we hope that tomorrow’s Budget faces up to the country’s realities.”

Here is the statement issued by Shri… pic.twitter.com/OY12akPOv2

— Congress (@INCIndia) July 22, 2024

“While the UPA had raised the MSP of wheat by 119 per cent and that of rice by 134 per cent, the Modi government has raised it by 47 per cent and 50 per cent respectively. This is not at all enough to keep up with inflation and the rising prices of agricultural inputs,” the Congress leader declared in a declaration on Monday.