Price Support Scheme – Ensuring Stability in Agricultural Markets
The Price Support Scheme (PSS) is a significant initiative by the government to ensure stability in agricultural markets and protect the interests of farmers. It aims to provide a minimum support price (MSP) for select agricultural commodities, thereby assuring farmers of a fair price for their produce. In this article, we will delve into the details of the Price Support Scheme and its implications for the agricultural sector.
Paragraph 1: The Price Support Scheme is implemented by the government’s nodal agency, the Food Corporation of India (FCI). Under this scheme, the FCI procures agricultural commodities directly from farmers at the MSP, which is a predetermined price announced by the government. This ensures that farmers receive a fair value for their produce, irrespective of the market conditions or price fluctuations.
Paragraph 2: The primary objective of the Price Support Scheme is to protect farmers from distress sales and market uncertainties. By offering a guaranteed minimum price, it acts as a safety net for farmers and encourages them to continue their agricultural activities without the fear of incurring losses. This scheme plays a crucial role in improving farmers’ income and overall rural prosperity.
Paragraph 3: Historically, the Price Support Scheme has focused on essential crops such as rice and wheat. However, in recent years, the government has expanded its coverage to include other commodities like pulses, oilseeds, and cotton. This expansion ensures that farmers engaged in the cultivation of various crops receive adequate support and incentives.
Paragraph 4: The Price Support Scheme not only benefits farmers but also contributes to food security and price stability in the country. By procuring agricultural commodities at the MSP, the government maintains buffer stocks, which can be utilized during times of scarcity or price inflation. These buffer stocks act as a safeguard against supply disruptions and help in maintaining a steady supply of essential commodities.
Why this News is Important:
Ensuring Fair Prices for Farmers
Paragraph 1: The Price Support Scheme assumes great significance in the context of farmers’ welfare. Agriculture remains the primary source of livelihood for a significant portion of the population, especially in rural areas. Ensuring fair prices for farmers is crucial for their economic sustainability and well-being.
Promoting Agricultural Stability
Paragraph 2: The Price Support Scheme plays a pivotal role in promoting stability in agricultural markets. By providing a minimum support price, it reduces the volatility in prices and shields farmers from the uncertainties of the market. This stability, in turn, encourages farmers to invest in agricultural activities with confidence.
Historical Context:
Evolution of Price Support Scheme
The Price Support Scheme has a historical context that dates back to the 1960s when the government initiated policies to protect farmers’ interests. Initially, the scheme focused on staple crops like wheat and rice, but it has gradually expanded its scope to cover various agricultural commodities.
Key Takeaways from “Price Support Scheme – Ensuring Stability in Agricultural Markets”:
| Serial Number | Key Takeaway |
|---|---|
| 1. | The Price Support Scheme ensures farmers receive a minimum support price for their produce. |
| 2. | The scheme is implemented by the Food Corporation of India (FCI). |
| 3. | It protects farmers from distress sales and market uncertainties. |
| 4. | The Price Support Scheme contributes to food security and price stability. |
| 5. | It has expanded to include commodities like pulses, oilseeds, and cotton. |
Important FAQs for Students from this News
What is the Price Support Scheme?
The Price Support Scheme is a government initiative aimed at providing a minimum support price (MSP) for select agricultural commodities to ensure fair prices for farmers and stability in agricultural markets.
Who implements the Price Support Scheme?
The Price Support Scheme is implemented by the Food Corporation of India (FCI), which serves as the nodal agency for procurement and distribution of agricultural commodities.
Which crops are covered under the Price Support Scheme?
Initially, the Price Support Scheme focused on staple crops like rice and wheat. However, it has now expanded to include other commodities such as pulses, oilseeds, and cotton.
How does the Price Support Scheme benefit farmers?
The Price Support Scheme benefits farmers by providing them a guaranteed minimum price for their produce, protecting them from distress sales and market uncertainties. It ensures their economic sustainability and encourages them to continue agricultural activities.
What is the significance of the Price Support Scheme?
The Price Support Scheme plays a crucial role in promoting agricultural stability, reducing price volatility, and contributing to food security. It also helps maintain buffer stocks of essential commodities, ensuring a steady supply during scarcity or price inflation.
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