MSP not helping rainfed
A study by Ramesh Chand of the National Centre for Agricultural Economics and Policy Research shows rainfed farmers invariably suffer from price fluctuations and earn less out of agriculture. The government with a view to ensure remunerative prices to the farmers announces the minimum support prices (MSP). Farmers perceive MSP as a guarantee price for their produce from the government. These prices are announced by the Government at the commencement of the season to enable them to pursue their efforts with the assurance that the prices would not be allowed to fall below the level fixed by the government. However, "MSP is not implemented everywhere and is effective only in those places where the government has set a procurement price," says Ramesh Chand. The study further notes that the farm harvest price (FHP) has a higher risk of going below the MSP. FHP is the actual price of the crop during three months after harvest.The study capturing the actual MSP and FHP in 12 states shows that Madhya Pradesh, Gujarat, Rajasthan, Karnataka, Maharashtra where 66-90 per cent of geographical area in each state are under rainfed conditions demonstrate fluctuations as high as Rs 300-445 per quintal. States like Punjab and Haryana that have experienced the Green Revolution are stable with variations of Rs 5-40 per quintal. The stability of prices in irrigated areas can be attributed to the presence of well-developed markets.
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