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The Age of Surplus -Harish Damodaran

-The Indian Express We have, indeed, entered a regime of “permanent surpluses” in most crops — a reality our policymakers are unable to grasp, stuck as they are in the era of the Essential Commodities Act. If there is one thing that has changed in Indian agriculture in recent times, it is supply response — the ability of farmers to increase production when prices go up. Traditionally, the supply curve in most...

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Cut their shackles: Why usual methods to rescue farmers will fail, and what can work in their stead -Prerna Sharma Singh

-The Times of India blog Dozens of farming groups determined to stall supply of fruits, vegetables and dairy products to major Indian cities is a clear indicator of growing rural discontent that the Modi government has been struggling to deal with for quite some time, amidst supply glut and depressed farm produce prices. Worried that unhappy farmers could cost BJP dearly in upcoming state and national elections, the government has promised to...

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The wait for deep agricultural reforms -Siraj Hussain

-Livemint.com While there are several creditable achievements, it is the deeper structural reforms where expectations from a strong government have not been met Amidst expectations of a magical transformation of the Indian economy, the Narendra Modi government took over the reins in May 2014. During the election campaign, people were led to believe that the Gujarat model of agricultural development, which delivered 8% growth in agriculture during fiscal years 2003-14, would be...

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How Punjab's paddy & Maharashtra's sugarcane are emptying irrigation reserves -Priscilla Jebaraj

-The Hindu Paddy and sugarcane are India’s most water-guzzling crops — using up over half of the country’s total irrigation water resources — but procurement policies and water and power subsidies are skewing profitability and distorting crop decisions, says a recent study done by agricultural economist Ashok Gulati, and Gayathri Mohan. It has been published as a working paper by the Indian Council for Research on International Economic Relations (ICRIER). The ICRIER...

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Why MSP at cost plus 50% is no big deal -Rajalakshmi Nirmal

-The Hindu Business Line The MSP for many crops is already 1.5 times cost; and procurement is either absent or very minimal except for paddy and wheat There has been much speculation on the Budget promise to farmers of 50 per cent return on cost of production. But this may not help farmers much, as many crops already enjoy 50 per cent profit at minimum support price (MSP), according to the price...

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