UPSC Mains 2018 · GS III · Q3 · 10 marks · 150 words

What do you mean by Minimum Support Price (MSP)? How will MSP rescue the farmers from the low income trap?

हिन्दी में

न्यूनतम समर्थन मूल्य (एम० एस० पी०) से आप क्या समझते हैं? न्यूनतम समर्थन मूल्य कृषकों का निम्न आय फंदे से किस प्रकार बचाव करेगा?

How a topper answered the closest question

Toppers wrote this one in a test series: “How can minimum support prices help in promoting farmers' income? What are the challenges faced by farmers in accessing the benefits of minimum support prices?”

Raghav JhunjhunwalaAIR 4 · CSE 2025 · 192 wordsTheir whole copy

Opening · a recent event

Recently, India witnessed severe farm protests over MSP coverage and demands to strengthen it.

Body · points

MSP: Help to promote farmer Income

(1) Prevent distress sales when price collapses.

(2) Promotes crop diversification, and encourages HVC: High value crop production.

(3) Encourages farmers to invest as they are assured of minimum returns.

(4) Helps to maintain cash flows and repay older debts.

(5) Stronger revision of MSP by Centre: past 8 yrs: > 4.6% p.a. Agri growth

(6) Helps undertake other avenues of non farm employment Ex: Funds for Animal Husbandry.

Challenges faced by farmers in accessing MSP benefits:

(1) Dalwai committee : Small and marginal farmers are mostly unaware.

(2) Regional divide: west India vs. East India (High coverage) (low coverage)

(3) Corruption by middlemen @ APMCs (Arhatiyas)

(4) Poor storage and transport facilities; difficulty to reach mandi/APMC.

(5) Poor capacity of MSP (Drying, storage, packaging & grading) → low price realization.

(6) monotonicity of crops: Wheat, rice : open procurement system

way forward: (1) → strengthen eNAM (2) → use Derivative Trading (3) → promote DBT over MSP

Close · a way forward

Ashok Gulati vouches for complete transfer to MSP and promotion of rural agri investment.

5 more toppers’ answers to this question, part by part, and how they all approached it: open the question.

Toppers’ answers to other close questions

Source: UPSC, Civil Services (Main) Examination 2018, General Studies Paper III, Q3. The paper on upsc.gov.in. Themes and links to toppers’ answers are by UPSC Grade, not by UPSC.