Limits to MSP
Policymakers need to shift from price support to income support
With possibly an eye on 2019, the Centre has stuck to its Budget promise of fixing kharif support prices at 50 per cent or more over the cost of production, which includes family labour but not rent. In the case of bajra, tur, urad and cotton, the increase awarded is 97 per cent, 65 per cent, 63 per cent and 59 per cent, respectively, over cost. The Centre’s focus on increasing pulses output and reducing dependency on imports is laudable. It is just as well that it has sought to push millets cultivation as well, a move that will benefit both dryland farmers as well as the nutrient intake of all consumers.