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Agriculture Policies in India (What should be done? (Set market right>…
Agriculture Policies in India
Policy Dilemma
Keeping farm produce price high to increase productivity in a sutainable manner
Keep retail food prices low
Keep overall inflation under control
OECD food and Agriculture Reviews
Report talks of Producer support estimate(PSE) and Consumer support Estimate(CSE)
PSE captures impact on
Output prices that producers receive, benchmarked against global prices
Input subsidies farmers receive from budgetary allocations from center and states
PSE and CSE are combined to see if farmers receive +ve support or -ve support as percentage of gross farm receipts
PSE as % of gross farm receipts is negative for India-->Policies have caused -ve growth of farm sector in india
What it implies?
+ve PSE:policies help producers receive higher revenue
-ve PSE:lower revenues due to adopted policies
Indian PSE:FROM 2014-2017 wa -6%
PSE:
OECD: +18%
EU:+19%
CHINA:+15%
indicates there is pro-consumer bias in India 's trade and marketing policies
What should be done?
Set market right>domestic market regulations
Promote competetive national market & upgrade marketing infra
Review restrictive export policies
Target vulnerable sections efficiently> DBT
Contain Input subsidies, divest them on R&D, upgrading infra, dealing climate change
Greater coordination between central and state ministries
If these changes are made, the Indian agriculture will become vibrant, sustainable,
resilient, and will also augment farmers' incomes on a sustained basis.