Minimum Support Price for Kharif Crops, 2018-19

The Union Government announced minimum support prices (MSP) for 17 agricultural commodities (14 kharif crops) on July 4, 2018. The announcement came in the backdrop of the assurance provided by the Prime Minister to sugarcane farmers that the Government is going to provide MSP for kharif crops at one and half times of production cost. However, a closer look at the MSP reveals that for no crop was MSP more than 50 per cent of production cost.

Agriculture in Budget 2018-19

The performance of the agricultural sector under Narendra Modi would be judged in 2019 by a single indicator: his grand promise to double per capita agricultural incomes between 2015 and 2022. However, available data does not indicate any satisfactory progress towards that goal. The poor growth rate of agriculture in 2017-18 had resonated in the surge of farmer’s protests over the last few months.

The Shrinking Policy Space for Food Security

Food security one one of the foremost goals of social policy in most developing countries, including India. Subsidies for food security can be at the producer level (through price support and procurement), at the storage, processing and transport level and, finally, at the retail level (that is, to the consumer). As per the WTO Agreement on Agriculture (AoA), subsidies are permissible except through price support and procurement.