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International Journal of Pure & Applied Bioscience (IJPAB)
Year : 2018, Volume : 6, Issue : 2
First page : (277) Last page : (286)
Article doi: : http://dx.doi.org/10.18782/2320-7051.6391

Revisiting Policies for Enhancing Minimum Support Price (MSP): Evidences From Cost of Cultivation Data of Bihar (India)

Nasim Ahmad1*, D. K. Sinha2, K.M. Singh3 and R. R. Mishra4
Department of Agricultural Economics, Dr. Rajendra Prasad Central Agricultural University,
Pusa (Samastipur), Bihar, India, PIN - 848125
*Corresponding Author E-mail: nasim.rau@gmail.com
Received: 10.03.2018  |  Revised: 8.04.2018   |  Accepted: 13.04.2018  


Farmers have played decisive role not only in making India self-sufficient in food production but also in exporting foodgrains to many countries. Prices affect both income and expenditure of the farmers. Poor income from farming resulted in increased indebtedness, widespread suicides of farmers across the nation. A significant increase or decrease in the price of a crop may result in increase or decrease in the area under that crop. The study revealed that farmer’s gains from paddy, wheat and maize over operational cost A2 were found 81.62%, 89.40% and 85.44%, respectively during the period TE-2015. Further, if we take family labour cost into account percentage gains assessed to be 37.85, 55.53 and 49.18 for paddy, wheat and maize, respectively. To achieve the fixed target only a little effort has to be made on optimizing input costs. For wheat we already have achieved the target of 1.5 time cost of produce during TE-2015. If we account cost C2, the farmers may be in losses. The gain percentage over cost C2 during TE-2015 were computed only 0.60%, 9.37% and 2.14 for paddy, wheat and maize only in Bihar.  To enhance the profitability of the farmers, the major cost components like labour charges, fertilizer cost, irrigation charges has to be optimize by fabricating implements suitable for marginal and small farmers, using information of soil heath cards in application of fertilizers and shifting irrigation from diesel pumping sets to electric and submersible pumping sets or solar pumping sets. Strong linkages of procurement agencies have to establish at Punchayat level. To address the farmer’s distress government should come forward to develop infrastructure, revise and strengthen the co-operatives and local communities. The price policy should be aimed at providing firm support, encouragement and enforce thrust on farming activities in such a way that farmers may not quit the farming and the youth may also be attracted forwards and take  farming as profession.

Key words: Minimum support Price (MSP), Cost of cultivation, Food-sufficient, Indebtedness, Mechanization, Soil health card

Full Text : PDF; Journal doi : http://dx.doi.org/10.18782

Cite this article: Ahmad, N., Sinha, D.K., Singh, K. M. and Mishra, R.R., Revisiting Policies for Enhancing Minimum Support Price (MSP): Evidences From Cost of Cultivation Data of Bihar (India),  Int. J. Pure App. Biosci.6(2): 277-286 (2018). doi: http://dx.doi.org/10.18782/2320-7051.6391

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