The writer is member, NITI Aayog. Views are personal.
Centre’s criteria for MSP ensure remunerative prices for farmers with a decent margin. Arguments for MSP at 50 per cent over Cost C2 defy economic logic.
Price fluctuation and low and unremunerative prices for farm produce can be addressed through competitive markets, and much-needed reforms.
The Budget 2017-18 provides strong push to the initiatives started in last two years beside covering some of the much needed reforms in agricultural marketing.
There are several measures, such as crop diversification, that can help India achieve this goal
Reform of agricultural markets and land lease laws must be a priority.
The Finance Minister’s budget speech indicates the Centre’s seriousness to fix problems facing the farm sector and put it on a trajectory of sustainable, stable growth.