While throwing light upon various competing factors at play, critically examine the dichotomy between a legally guaranteed MSP with fiscal constraints and WTO regulations. Provide some recommendations on how the government can find a middle path forward.

The government faces three key constraints in meeting the farmers’ demands – Unfulfilled political promise of doubling farmer incomes by 2022, which becomes difficult without enhancing MSP or providing legal backing. Going back on these risks losing political support. Persistent ..

Topics: GS-III: Issues Related to Direct and Indirect Farm Subsidies and Minimum Support Prices

As a member of World Trade Organization (WTO), mention the domestic support measures available to countries under the Agreement on Agriculture. In this context, analyse the ‘peace clause’ provision.

The agreement on agriculture, crucial aspect of Doha dialogue under WTO, aims to arrive at consensus on extent of domestic support countries can extend to their agriculture sector. Domestic Support Measures: Food security program – E.g. National food security act, ..

Topics: GS-II: Bilateral Regional and Global Groupings and Agreements • GS-III: Issues Related to Direct and Indirect Farm Subsidies and Minimum Support Prices

Explain the difference between direct and indirect farm subsidies and also mention their merits and demerits.

The farm subsidies cost approximately 2.5-3.0% of our GDP and account for over 1/5th of total farm income. Direct and indirect subsidies: Direct farm subsidies include support/ subsidy transferred directly into farmer’s hands. Whereas, indirect farm subsidies are inherent in ..

Topics: GS-III: Issues Related to Direct and Indirect Farm Subsidies and Minimum Support Prices

India’s policy of price intervention in the agricultural sector has done more harm than benefit. It has created a skewed agricultural market and complicated matters related to international trade rules. Critically discuss.

The agricultural sector provides employment to nearly 45% population and is crucial to India’s food security. Thus, numerous price interventions exist to support the sector: Direct Benefit Transfer to farmers, e.g. PM-Kisan. Guaranteed crop procurement at pre-decided prices, e.g. MSP, ..

Topics: GS-III: Storage Transport and Marketing of Agricultural Produce Related Issues • GS-III: Issues Related to Direct and Indirect Farm Subsidies and Minimum Support Prices

Discuss the challenges faced by jute industry in India. What are the steps taken by the government to address these challenges?

Jute is a biodegradable natural fibre that is used for variety of purpose like making ropes, gunny bags for packaging, etc. Challenges faced by Jute industry: The small size of Jute making firms. The use of obsolete machinery and technology. ..

Topics: GS-III: Major Crops Cropping Patterns in Various Parts of India • GS-III: Storage Transport and Marketing of Agricultural Produce Related Issues • GS-III: Issues Related to Direct and Indirect Farm Subsidies and Minimum Support Prices

There are several issues that are plaguing the crop procurement process in India. Discuss the measures to strengthen crop procurement in India.

Under provisions of the National Food Security Act and Public Distribution System, the government of India procures most of the agricultural produce in the country at various support prices like MSP. Issues plaguing crop procurement: Support price-related issues – The ..

Topics: GS-III: Storage Transport and Marketing of Agricultural Produce Related Issues • GS-III: Issues Related to Direct and Indirect Farm Subsidies and Minimum Support Prices • GS-III: Public Distribution System Buffer Stocks and Food Security