Business Daily from THE HINDU group of publications
Monday, Sep 01, 2008
ePaper | Mobile/PDA Version | Audio
Business Daily from THE HINDU group of publications Monday, Sep 01, 2008 ePaper | Mobile/PDA Version | Audio |
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Mentor
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Agriculture Agri-Biz & Commodities - Books Industry & Economy - Economy Columns - Whackonomics Agriculture, a growth engine 
There are a few States in India where the procurement of agricultural products at minimum support price (MSP) is undertaken even when the market prices are higher than the MSP, while at the same time there are States where the farmers are not able to sell their produce to the procurement agencies with market prices collapsing below MSP. How paradoxical, observes R. S. Deshpande in one of the essays included in Reforming Indian Agriculture: Towards Employment Generation and Poverty Reduction, edited by Sankar Kumar Bhaumik ( www.sagepublications.com). The author describes three models of grain procurement. “The first model is that of Punjab, Haryana, and Uttar Pradesh, where the procurement agencies are well set and the procurement of grains is a regular activity.” In these places, distress caused to farmers is minimum; and the farmers’ political lobby keeps the MSP moving up, says Deshpande. “The second model is the bureaucratic circuitous route of procurement existing in Maharashtra, Andhra Pradesh, Karnataka, Gujarat, and West Bengal.” Here, the time lag between the price collapse and actual procurement goes through a lot of circuitous procedures; so much so, the policy becomes redundant and ineffective, the author bemoans. The third model, according to him, is what Tamil Nadu, Bihar, and Madhya Pradesh follow, by selectively effecting procurement to a few regions, crops, and groups of farmers. Educative read. D. MURALI More Stories on : Agriculture | Books | Economy | Whackonomics
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