The Minimum Support Price (MSP) system in India, designed to protect farmers from sharp declines in market prices, faces significant limitations. Analyse.

Topic: Issues related to direct and indirect farm subsidies and minimum support prices;

Topic: Issues related to direct and indirect farm subsidies and minimum support prices;

5. The Minimum Support Price (MSP) system in India, designed to protect farmers from sharp declines in market prices, faces significant limitations. Analyse. (250 words)

Difficulty level: Moderate

Reference: Indian Express

Why the question: The article discusses that import policy must be well-integrated with minimum support policy. Key Demand of the question: To write about the current limitations of MSP and changes that are needed in it. Directive: Analyse – When asked to analyse, you must examine methodically the structure or nature of the topic by separating it into component parts and present them in a summary. Structure of the answer: Introduction: Begin the defining the concept of MSP. Body: Frist, write about the various objectives behind MSP. Next, write about the reasons as to why MSP has not achieved its stated objectives – MSP distorts the basic logic of the supply-demand mechanism, slows down the process of diversification, and is economically a very expensive and inefficient policy instrument, besides leading to massive leakages and corruption. Next, discuss what needs to be done. Highlight the efforts of the government in this direction Conclusion: Write a way forward.

Why the question:

The article discusses that import policy must be well-integrated with minimum support policy.

Key Demand of the question:

To write about the current limitations of MSP and changes that are needed in it.

Directive:

Analyse – When asked to analyse, you must examine methodically the structure or nature of the topic by separating it into component parts and present them in a summary.

Structure of the answer:

Introduction:

Begin the defining the concept of MSP.

Frist, write about the various objectives behind MSP.

Next, write about the reasons as to why MSP has not achieved its stated objectives – MSP distorts the basic logic of the supply-demand mechanism, slows down the process of diversification, and is economically a very expensive and inefficient policy instrument, besides leading to massive leakages and corruption.

Next, discuss what needs to be done. Highlight the efforts of the government in this direction

Conclusion:

Write a way forward.