Wednesday 30 December 2015

“The time has come to review the utility of not just Minimum Export Prices (MEPs), but also other restrictions on movement, storage and marketing of agricultural produce.” Do you agree with this view? Substantiate. (200 Words)



Ans:-Agriculture sector has been riddled with many problems relating to ad-hoc policies and inefficient systems that handle the movement, storage and marketing of food grains and appropriate steps are required on each of these fronts. Such an argument is being made because:

1)Minimum Export Prices-An ad-hoc policy is followed for hiking or reducing the MEP which affects farmer in adverse way because of poor realization of prices. A long term policy keeping interests of farmers in mind and the international market prices should be the way forward

2)Movement- The inter-state restrictions on movement of food grain prevents moving the grain from surplus to distress regions and thus affect the social security of people. Such barriers should be eliminated through use of Article 301 to 307 in Indian constitution that promotes free movement

3)Storage-FCI is under the hands of central government and has no autonomy. Decisions with regard to storage of excessive food grains or emptying the warehouses with rotten food grains are not in hands of FCI. Government should provide adequate autonomy to FCI to take such decisions in order to prevent pilferage of food grains.

4)Marketing-Farmers face problems of low price realization in Agriclutral Produce Marketing Comittees ‘Mandis’ and are not able to sustain themselves. The model APMC act that promoted the participation of private sector has not been implemented by all the states and the monopoly of APMC continues. Placing thrust on contract and direct farming to allow the farmer to fetch better process should be the way forward.

Agriculture sector promotes the food security of every individual in the nation and need to be provided with adequate care and support to keep it sustainable.

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