Topic- Storage, transport and marketing of agricultural produce and issues and related
5) Among several options being contemplated to address agricultural distress in the country, direct income/ investment support is the most prudent option. Critically analyze.(250 words)
Structure of the answer
Introduction- write a few introductory lines about the various options being discussed in political and media circles about addressing farmers’ distress. E.g Loan waiver schemes, Increased MSPs and Direct Cash/ Investment support.
- DIscuss the cons of first two options briefly-
- Loan waiver schemes- Only helps large farmers who are able to take institutional credit; it is a band aid solution not a comprehensive one; It enforces and strengthens uneconomical populism and abjures the government from its responsibilities etc.
- Increased MSPs – Only helps a fraction of farmers especially those growing Wheat< Rice and Sugarcane; Higher Chances of corruption in this model; Also it helps mainly large farmers who are able to have sufficient surplus etc.
- Discuss the pros of the direct income/ investment support. E.g
- It can be enforced to include almost all the farmers who have access to formal banking channels (Jan-Dhan Accounts)
- Provides financial help at proper time/ season.
- Helps large as well as small farmers and can even be capped to limit unwarrantedly huge transfers to rich farmers.
- No corruption issue.
Conclusion– based on your discussion, form a fair and a balanced conclusion on the given issue.