Assess how well the government’s price support programs—the Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) and the Minimum Support Price (MSP) system, in particular—achieve stable agricultural markets and fair prices for farmers.
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Evaluation of Government Price Support Mechanisms in India
1. Overview of Price Support Mechanisms
Minimum Support Price (MSP) System
Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA)
2. Effectiveness of the MSP System
Ensuring Remunerative Prices
Stabilizing Agricultural Markets
Challenges
3. Effectiveness of PM-AASHA
Comprehensive Support
Encouraging Crop Diversification
Challenges
4. Assessment of Challenges and Constraints
Infrastructure and Procurement Issues
Regional Disparities
Financial Constraints
5. Recommendations for Improvement
Strengthening Infrastructure
Improving Administrative Efficiency
Ensuring Regional Equity
Sustainable Financial Management
6. Conclusion
The government’s price support mechanisms, including the MSP system and PM-AASHA, play a critical role in ensuring remunerative prices for farmers and stabilizing agricultural markets. While these schemes have demonstrated effectiveness in supporting farmers’ incomes and promoting crop diversification, they face challenges related to infrastructure, administrative efficiency, regional disparities, and financial constraints. Addressing these challenges through targeted improvements and strategic interventions can enhance the effectiveness and sustainability of price support mechanisms, contributing to the overall stability and growth of India’s agricultural sector.