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Farm Support, MSP, PDS & Food Security
GS-III: Economy, Environment, Security, Disaster & Technology
Useful for: UPSC Civil Services
Overview
Price support and public distribution protect farmers and consumers but face issues of coverage, leakages and distortion of cropping patterns.
Key points
- MSP is announced for 22 mandated crops, plus a fair and remunerative price for sugarcane.
- The National Commission on Farmers (Swaminathan) recommended MSP at 50% above the comprehensive cost (C2).
- The Shanta Kumar Committee (2015) estimated that only about 6% of farmers sell at MSP and recommended restructuring FCI.
- Procurement is concentrated in a few states and crops (wheat, rice).
- Leakages in PDS have been reduced by digitisation and Aadhaar-based authentication.
- Free foodgrains under PM-GKAY were merged with NFSA entitlements.
Practice MCQs
From the perspective of definition and scope, which one of the following statements about Farm Support, MSP, PDS & Food Security is correct?
- Farm Support, MSP, PDS & Food Security has no exceptions or limitations in exam analysis.
- Farm support instruments include prices, procurement, input support, insurance, credit and infrastructure and have different incentives.
- Announced MSP guarantees procurement of every unit of every covered crop everywhere.
- Farm Support, MSP, PDS & Food Security is unrelated to institutions, processes or real-world applications.
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Answer: (b) Farm support instruments include prices, procurement, input support, insurance, credit and infrastructure and have different incentives.. Farm support instruments include prices, procurement, input support, insurance, credit and infrastructure and have different incentives.
Consider the following statements on Farm Support, MSP, PDS & Food Security, focusing on definition and scope: 1. Farm support instruments include prices, procurement, input support, insurance, credit and infrastructure and have different incentives. 2. Announced MSP guarantees procurement of every unit of every covered crop everywhere. Which of the statements given above is/are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
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Answer: (a) 1 only. Statement 1 is correct; Statement 2 is a common misconception.
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