(MENAFN- KNN India)
New Delhi, Jan 4 (KNN)
As debates around excluding food prices from the inflation index gain momentum, another pressing demand has emerged: ensuring crops are not sold below government-fixed minimum support prices (MSP).
Meeting both demands may offer a potential solution but poses challenges, particularly for the middle class, which frequently voices concerns over rising food prices driven by supply-side constraints.
Recent data underscores the complexity. During the October-December 2024 kharif harvesting season, mandi prices for 10 out of 14 MSP-declared crops were 2-25 per cent below their MSPs, with exceptions being cotton, paddy, sesame, and tur.
This gap has left farmers dissatisfied, even as Agriculture Minister Shivraj Singh Chouhan projects agricultural growth of 3.5-4 per cent in FY2024-25, a significant recovery
from 1.4
per cent the previous year, buoyed by record foodgrain production and a low base effect.
The government's optimism is tempered by concerns about technology adoption. While rejecting genetically modified (GM) crops, it has endorsed gene editing techniques to address climate challenges and improve productivity.
However, bridging the gap between research and field application remains daunting due to a faltering agricultural extension system and limited access to advanced global technologies.
Meanwhile, shifting trends in the fertilizer sector signal adaptation, with companies exploring non-chemical crop nutrients aligned with the government's natural farming push.
Yet, critics argue the transition needs robust policy support to protect intellectual property rights and encourage innovation.
On the reform front, the Centre has revived elements of the repealed 2021 farm laws, proposing a“National Policy Framework on Agricultural Marketing.”
This framework aims to create a competitive, transparent marketing ecosystem, enabling farmers to access markets of their choice and achieve better price realizations.
However, the Centre is taking a decentralized approach, urging states to draft their policies aligned with the national vision.
While the government's reforms and initiatives hold promise, execution challenges remain significant. Ensuring farmers benefit without alienating consumers or disrupting markets will test policymakers' resolve in the coming years.
(KNN Bureau)
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