Minimum Support Price are not covering cost of production for several crops. What are the alternative…

Question

Minimum Support Price are not covering cost of production for several crops. What are the alternative strategies to address the viability of farming?

Ghissu Editorial · Accepted Answer

Farming viability needs a holistic approach beyond MSP: income support like PM-KISAN, crop insurance, market reform through e-NAM, diversification through FPOs, and investment in irrigation, storage and technology. MSP falls short because procurement centres on rice and wheat while input costs rise faster than support prices.

**Introduction**

MSP often fails to cover production costs for many crops, threatening the viability of farming, especially for small and marginal farmers in ==Telangana==. This gap risks rural livelihoods and food security. Alternative strategies beyond MSP are vital for ensuring sustainable incomes and resilience in agriculture.

**Reasons MSP Fails**

1. **Market Inefficiencies and Price Realisation**: Fragmented mandis, middlemen exploitation, and poor market integration mean farmers often receive prices below MSP, especially in ==Telangana==’s rainfed regions.

**Alternative Strategies**

1. **Income Support and Insurance**: PM-KISAN offers unconditional cash transfers supplementing farmer incomes; Prime Minister’s Fasal Bima Yojana mitigates risks from weather and pests but requires better implementation and claim settlements in ==Telangana==.

2. **Diversification and Infrastructure**: Tank revival under Mission Kakatiya and farmer producer organisations support crop diversification, allied activities, and value addition; irrigation projects such as Kaleshwaram Lift Irrigation and Per Drop More Crop⟦1⟧ (PDMC) enhance water-use efficiency and productivity.

3. **Technology and Extension Services**: Adoption of precision agriculture, climate-resilient crop varieties under the National Mission on Sustainable Agriculture (NMSA), and strengthened extension services improve yields and reduce costs sustainably.

**Way Forward**

1. **Promote Diversification and Allied Activities**: Support farmers through credit, extension, and infrastructure to diversify into horticulture, dairy, and fisheries, leveraging ==Telangana==’s agro-climatic advantages and schemes like Rythu Bandhu.

**Conclusion**

A holistic approach combining income support, market reforms, diversification, technology adoption, and infrastructure development is key to sustaining farming viability. Initiatives in ==Telangana== exemplify this multi-pronged strategy, which can secure farmer incomes, promote sustainable agriculture, and contribute to doubling farmers’ income.

Minimum Support Price are not covering cost of production for several crops. What are the alternative strategies to address the viability of farming?

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