What is it about?
The Minimum Support Price (MSP) under the Aegis of Universal Basic Income (UBI) is a proposed policy that combines the existing MSP system with a UBI, potentially offering a more comprehensive safety net for farmers. This review explores the implications and potential benefits of such a combined approach, while also considering the challenges and considerations for implementation
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Why is it important?
MSP is the price at which the government purchases crops from farmers, ensuring a minimum income even if market prices fall. It's a crucial policy for Indian agriculture, aimed at protecting farmers from price volatility and encouraging production. UBI is a regular, unconditional cash transfer to all citizens, regardless of their income or employment status. It's a social safety net designed to alleviate poverty and provide economic security. Combining MSP with UBI could provide farmers with a more robust safety net, addressing both market-related risks (through MSP) and general economic vulnerabilities (through UBI).
Perspectives
UBI could encourage farmers to diversify their crops, moving away from over-reliance on MSP-supported crops, potentially reducing production risks and promoting more sustainable agriculture. By carefully considering the implications and addressing the challenges, combining MSP and UBI could offer a powerful approach to ensuring sustainable livelihoods for farmers and strengthening India's agricultural sector.
Dr. Sumit Kumar Singh
Patanjali Research Foundation
Read the Original
This page is a summary of: Minimum Support Price under the Aegis of Universal Basic Income: Understanding the Implications and Way Forward: A Review, Bhartiya Krishi Anusandhan Patrika, July 2023, Agricultural Research Communication Center,
DOI: 10.18805/bkap640.
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