How does the Modi government's assurance to purchase all farm produce at MSP impact farmers’ livelihoods
Analyze the potential effects on farmers' livelihoods of the Modi government's commitment to buying all farm produce at Minimum Support Price (MSP).
- Assurance of MSP provides farmers with guaranteed income for their produce, ensuring financial stability.
- Farmers might be encouraged to diversify crops and increase production, leading to improved income and livelihoods.
- Reduction in distress sales as farmers can sell at MSP, protecting them from market fluctuations.
- Increased confidence among farmers to invest in better farming practices, technology, and infrastructure.
- Potential risk of government facing challenges in purchasing all farm produce leading to storage and distribution issues.
- Possible impact on market prices as government intervention could distort equilibrium.
Answered
5 months ago