In this year’s budget the MSP will be fixed A2+FL rather than C2 costs. Your views on this? Do you think it will help Agri sector??
As we all that indian agriculture is highly dependent on monsoon. It’s due the monsoon only that why imports increased. Considering your point on fertilizer industry…..I will say that Agri sector is unorganized which means it lacks proper planning and governance in india and most of the farmers own small lands and cultivation on such small land is not economically feasible. Crop insurance is not widespread in our country. So this leaves our farmers at the risk of crop failure due to weather. Government needs to ensure that MSP reaches the farmers not just the middlemen. On careful analysis we can see there are very few private players in Agri. Government needs to create an enabling environment for private companies as they can do wonders for this sector. They can tap the crucial areas like pulses and oil and also can provide them with competitive price
Ok fine bt frm last two yrs due to bad monsoon India hv high imports of edible oil nd pulses.fertilizer industry is in crisis nd many units r bout to shut down. Wts yur pnt on this.
this is indirectly mentioned in the budget that govt. should purchase either at MSP or some other mechanism.But in my opinion it is not practical OR sustainable and also a guaranteed margin will definitely cause an inflation, also efficiency and productivity will hamper. Cause cost cutting required when we talk about increasing productivity, as mentioned in the budget. but if it is feasible (A2+FL) it is really good. As you must heard in the budget that there was a lack of clarity on what really comprises of cost of production i.e. if it covers the actual expenses + family labor or the comprehensive cost (c2).Finally, i would like to mention that promises are made in every budget we can only say if it will help the agri sector or not, only when the implementation phase starts.