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Resource centre on India's rural distress
 
 

MSP only real risk protection for farmers, says new study -Chetan Chauhan

-Hindustan Times

In Punjab, 90% of the agri produce is traded at markets regulated under the Agriculture Produce Marketing Committee (APMC) Act by licensed commission agents. Bihar abolished the APMC Act in 2006 and traders and private players can buy produce directly from farmers.

Farmers in fully regulated agriculture markets in Punjab got 30% more price for their produce in 2018-19 than those in totally unregulated markets in Bihar and partially regulated ones in Odisha, a study of the agri markets in three states has found, terming minimum support price (MSP) as only risk-management instrument available for farmers.

The study, by the University of Pennsylvania Institute for the Advanced Study of India (UPIASI), with local research institutes in Bihar, Odisha and Punjab, attempted to understand the dynamics of three different agriculture trading systems, and comes at the time farmers from Punjab and Haryana are protesting and demanding MSP guarantee in law, and the scrapping of the three new laws that aim to liberalise the farm economy.

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