Evaluation of agricultural price support systems: A comparative analysis of MSP implementation in Bihar and Punjab states of India

Abstract

Agriculture is critical in India, serving as both a source of livelihood and a developmental component in creating and maintaining a higher National Gross Domestic Product. The study on Evaluation of Agricultural Price Support Systems: A Comparative Analysis of Minimum Support Price- Implementation in Bihar and Punjab States of India, discusses the impact of agricultural marketing on workforce, how farmers sell their products and the role of Minimum Support Price in the Agricultural Marketing. The paper analyses and compares the implementation and the impact of the Minimum Support Price in the states of Bihar and Punjab through review of existing literature, policy documents and statistical data. Bihar abolished Agricultural Produce Market Committee Act in 2006 opening up the state to private buyers, whereas Punjab is dependent on state procurement at Minimum Support Price for its two major crops-wheat and paddy. The comparative analysis of Minimum Support Price implementation in Bihar and Punjab highlights the crucial role of Minimum Support Price in supporting the farmers and stabilizing India’s agricultural economy. Agriculture engages a vast workforce in India and efficient Agricultural Marketing is essential for economic stability. Minimum Support Price ensures fair prices, income security, food security and market stability. When agricultural harvest prices fall below minimum support price, the government must take proactive measures to facilitate purchase. Minimum Support Price policy should benefit all the states, not just the producers of major foodgrain crops.