Although state-owned agencies like Food Corporation of India (FCI) have lifted record amount of essential food grains like rice and wheat during last two years mainly due to bumper production and higher prices offered to farmers, the government on Tuesday admitted that more than 71% of farmers in the country do not possess understanding on the concept of minimum support price (MSP).
MSP is the rate at which the government procures essential agricultural commodities from farmers for buffer stocks ensuring that retails prices are maintained. MSP has been announced for 25 commodities including seven cereals, five pulses gram, eight oilseeds, copra, raw cotton, raw jute, tobacco and sugarcane.
?71% of farmers did not understand the concept of MSP,? agriculture minister Sharad Pawar informed the Lok Sabha. Pawar was quoting a survey done by the national sample survey organization (NSSO).
The NSSO had carried out the situation assessment survey of farmers between January and December 2003. Pawar said about 10% of the farmers were aware of the concept of MSP but not the procurement agency. Last month a report published by the National Academy of Agricultural Sciences (NAAS) said that for sustaining the food security of the country, the government’s price support system should be expanded to regions such as Bihar, eastern Uttar Pradesh, Orissa, Assam, Madhya Pradesh and Chhattisgarh,
?These states have relatively poor marketing infrastructure and public procurement in these areas would not only help in boosting growth of cereal output, but would also result in development of marketing system,? the state of Indian agriculture report by NAAS said. The objective of MSP instrument is to reduce price uncertainty faced by the farmers and to induce them to adopt new technology and increase the production of agricultural commodities.