Why a price insurance policy makes sense
There is a growing demand from a section of farmers’ organisations for guaranteed Minimum Support Price (MSP). The Central government has agreed to constitute a committee to consider the issue. Now the onus is on the committee to come out with a solution amicable to all stakeholders — farmers as well as Central and state governments. As the proposal will have huge logistic and fiscal implications (estimated costs varying between Rs 1.5 lakh crore and Rs 2.5 lakh crore), which can be sustainable only if both Central and state governments share the burden. Agriculture is a state subject and the entire agricultural extension machinery is in the hands of states, which can advise farmers on the correct choice of crop rotation, the use of right quantity of inputs, supply of irrigation water and most importantly APMC (Agricultural Produce Market Committee) markets.