Minimum support Price Base price | Current Affairs

Minimum support Price Base price | Current Affairs

Hello students welcome to the class on current affairs and in today’s class we’ll be dealing with the base price of Agriculture to decide minimum support price base price of Agriculture Now because it is a nation of farmers About 49% of employment that India has given to its citizens. It is in terms of the farmers Now there is an important fact about the agriculture sector of India It is that the farming is not a remunerative profession Farming it has become a kind of profession which will not help the farmers to sustain Their family it will not help to sustain themselves financially So in such a situation in order to motivate the farmers So that they can keep on investing in technology? they can help to enhance the productivity of Agriculture the Government of India had set up National Commission on Agriculture costs and prices Now it is this very Commission that basically recommends. What should be the minimum support price Of the various crops So the prices of the crops on which the government will be buying from the farmer in case there is a kind of an ami in the agriculture sector in case There is surplus production and the prices go down in Such kind of a situation the support to the farmer We’ll be meted by the government and the government will be procuring That agriculture yield that agriculture output from the farmer by paying a minimum support price You know this is important now. How this minimum support price should be decided minimum support price what minimum means That the price that the government will be willing to give it to the farmer Now what should be the minimum the minimum is decided on a certain base Now what is this base now this base is how much? How much it costs how much it costs to the farmer What is the cost price to the farmer that will basically be deciding about What should be the minimum support price? He farmer co ik krakow Buchanan’s o karma or crops a yield Lena who kitten a cost karai That will decide about you Keith na Pasadena Choi Jake farmer go So it is very important for The government to understand and know the base price Now there has off let there has been lot of controversy with respect to the base price. How this base price should be calculated base price Calculation Because when it comes to the calculation of the cost that is meted by the farmer there are different viewpoints So broadly there are three ways how we can actually calculate the cost to a farmer for producing a particular crop So the first is about that. We generally called as a as a to cost What is this a -? It is the actual cost to the farmer This is one way of looking at a farmer Coquette Anika para. Ha hey farmer kogatana input cost on a – we’ll deal with The cost that the farmer will have to pay for all the inputs inputs in terms of seeds inputs in terms of we decides insecticides inputs in terms of practice threshers and winnowing machine etc Katana passaic farmer qey seed malaga rocky turnip a so-called liberal animal agora in cash and as well as in-kind cash plus kind So this is one way of looking at the cost Of a farmer and on the basis of this Generally governments give about 50% price more than this base. Cost that is the minimum support price Now this is very important the second thing we have is That is how this base price is calculated second is with respect to including not only the cost of these things but also the cost of Family labor the cost of family labor Because you would have seen that in the agriculture families It is not only the input cost that matters but the entire family is also involved in this occupation of farming They also Support the farmer because they are supporting the farmer They also should be paid. There is a cause we should also calculate Per head cost of the family member that is supporting in this agriculture and ever So that is another way of looking at the base price for The cost price to a farmer this is second approach, and this is the approach that is presently working That is that has become the basis of providing minimum support prices to the farmers But we have third Approach and this approach is see to it is known as see to first. We have as a 2 then We have as a 2 plus family labor plus, FL a 2 plus, FL and third is comprehensive cost See When it comes to farming as a profession it is carried out on a piece of land Now if you are now if you would not be sowing the crop on the on this piece of land you would have certainly rented Out the out this piece of land to someone else, and you would have certainly got the rn2 out of it. This is one thing secondly When you are investing money in the agriculture like it is costing you about thirty thousand rupees per hectare To Soviet or rice I’m taking hypothetical cost and if you would have deposited this amount in the bank you would have certainly got interest on it and if you are investing in the capital like and that Directors in the winnowing machine in the threshers even in that case you would have caught you Would have certainly got an interest on the capital that you would have been invested So there is the issue of interest there is issue of rent? Agree is mean karate. There is parent Agar-agar was teasing didn’t do open invest Kia farming activity Kern, MA auger Which is the obnoxio the bank may pass at all the top contrast I go Now People like Swaminathan who had put forward it’s a report on how to reform agriculture sector in India They have always wanted that this should be how this base price should be calculated the input cost of a Farmer should be done on the basis of the rent that he would have got Plus the interest he would have got on the capital that he has invested plus the cost of seeds then Winnowing machines insecticides we decide stretchers and Labor’s plus the cost of the family So comprehensive cost it involves the cost of the piece of land It involves the cost of the capital it involves the cost of the labor it involves the cost of the farmer Now this should be the base and apart from this About fifty percent should be the price that the farmer should be getting out of this piece of land So in this way if the government would be giving to the farmers the minimum support price on the basis of the c2 formula in that case Government would have to cuff up About fifty thousand crore rupees more per year So it will it will entail lot of fiscal pressure fiscal pressure So that is one of the reason why the government is not actually investing in this thought the thought of making the base price on the basis of this c2 Comprehensive cost so the government actually wants it to be just carried out on the basis of a two plus family but there has been a lot of criticism of the government because a Guarantor a hankie agriculture sector remunerative Vanara a productive Benari and because it also Will be supporting the food security of the nation in that case we really need to calculate the cost on the basis of the c2 basis that a complete cost So this was all for the class you can subscribe to this channel name of the channel is brainy IES Ma bye take care have a nice nice day, and you can install over-application That is I EAS buzz and you can also draw another super 50 batch in chandigarh Bye bye take care have a nice nice day

4 thoughts on “Minimum support Price Base price | Current Affairs

  1. thank u sir and this lecture was very useful in understanding the issues related to MSP formulations

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