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5) Trade and marketing policies of India have inflicted a huge negative price support to Indian farmers. Critically Analyze. (250 words) 

Topic – Indian agriculture

5) Trade and marketing policies of India have inflicted a huge negative price support to Indian farmers. Critically Analyze. (250 words) 

Financial express

Why this question

The article talks about a recent ICRIER study which shows that the effect of governmental support for farming sector through subsidies is not having the impact that’s expected of such policies. The article also highlights the steps suggested which can help in better management of farming sector. The issue would help us in understanding the impact of government’s policies in a much better way.

Key demand of the question

The question expects us to bring out an answer to the following points

  • The kind of policies undertaken by the government in focus here
  • The impact of such policies – both the good and the bad
  • Discuss the alternatives which are likely to have a much greater impact on the welfare of farming sector
  • Give a fair and balanced view and discuss way forward

Directive word

Critically analyze –

Structure of the answer

Introduction – Give a brief background of why trading and marketing policies are so important for the farming sector

Body

  • Discuss the nature of trading and marketing policies being followed so far – APMC, MSP etc
  • Discuss the impact that such policies have had on the farming sector – both good and bad. Highlight the findings of the report of ICRIER Committee.
  • Mention the alternatives which are likely to benefit farmers in a more effective and sustainable way such as the focus on agricultural research and extension services etc

Conclusion – Based on the arguments made above, give a fair and balanced opinion on the nature of agricultural trade and marketing policies and discuss the way forward.