Government’s policy of MSP led procurement may not prove to be a sustainable solution to the growing woes of the agricultural sector. In view of strengthening of JAM trinity, along with direct cash transfers, other alternatives like Price Deficiency payments (PDP) can prove to be more effective in ameliorating farming distress. However, its success will largely depend on how well the states implement the reforms related to recently passed ordinances on APMC mandis, contract farming and Essential Commodities Act. Agriculture in India accounts for about 50% of the workforce. However, it is the farmer that is always the worst affected section from any economic shock. Be its government announcement of demonetisation in 2016 or latest pandemic outbreak, farmers have truly borne the brunt of such jolts. Further, they continue to suffer from vagaries of nature – heavy monsoon, drought, and pest attack leading to massive “sunk cost”; thereby pushing them with no alternative means to survive ...
A blog about challenges and opportunities in Indian economy