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Resource centre on India's rural distress
 
 

Leverage WTO to reform the MSP regime -Ashima Goyal

-The Hindu Business Line

It’s in India’s own interest to phase out free supply electricity and water and focus on productivity boosting infrastructure

The macroeconomic impact of MSP has been neglected in the current debate. It worked, over the years, as a push keeping Indian inflation high. The short-term rise in farmer incomes it delivered was soon eroded, leading to another rise and so on.

In recent years it has led India to fall foul of the WTO. While the WTO is unfair and heavily biased in favour of advanced economies (AEs), perhaps India can use it to make feasible essential reform in its farmer support programmes. It is an issue worth debate in view of the upcoming WTO ministerial.

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