What Indian farmers really need: A total overhaul of fundamental economics of agriculture
    What Indian farmers really need: A total overhaul of fundamental economics of agriculture - Economic Times
    More than subsidies, loan waivers and minimum support prices, Indian farmers actually need the fundamental economics of agriculture to be fixed.

    “The problem we are facing this year is overproduction of agricultural commodities, resulting in crashing prices,” he says.Farmer associations are demanding the implementation of distress formula proposed by agriculture scientist MS Swaminathan and the National Commission on Farmers: minimum support price (MSP) that is the cost of production plus 50%.Loan waivers also discriminate between farmers who have paid their loans and those who cannot take loans,” he says.“What we need to do is reduce input costs and find a way to predict prices of commodities for the farmers.” The model that Pani suggests is decentralised futures markets by agri-entrepreneurs.“They predict a price and if the farmer is willing to sell his produce at that price, he will grow that crop.If the prices fall below that rate, the farmer should get the price quoted; if the prices are higher, the entrepreneur gets the profit,” he says.Several such models are in place across India, particularly under the UPA-initiated Integrated Agriculture Development and Integrated Horticulture Development public-private-partnership schemes, which the NDA has also aggressively supported.

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