India's price intervention policies to support its agricultural sector not only create a broken system but also complicate matters related to international trade rules. Critically discuss.
Main Body
Ordian (2%) population is engaged in agriculture while it created only 16% contribution to gdp. This mismatch is handled by price intervention policies of government, such as MSP, market intervention scheme MIS, public distribution system PDS. Price intervention schemes - 1. Domestic issues create broken system - 1.1. Monopoly of some states and regional leads to disparities - lease & wheat are promoted which are water-intensive rnc and under nutritiened security 1.1.1. 5 states contribute to wheat PDS procurement. 1.2. Not enough embrace on cash crops, horticulture not part of MSP. 1.3. Distorted import - export system, so no MSP from already leading to import bill. 2. International trade rules issues - 2.1. Against 'agreement on agriculture' of WTO where these subsidies over counted under Amber box. 2.2. Creates system of subsidies (ceftus much fatticle) leading to SFs rules violation & import affected.
1.2. Not enough embrace on cash crops, horticulture not part of MSP. 1.3. Distorted import - export system, so no MSP from already leading to import bill. 2. International trade rules issues - 2.1. Against 'agreement on agriculture' of WTO where these subsidies over counted under Amber box. 2.2. Creates system of subsidies (ceftus much fatticle) leading to SFs rules violation & import affected. India is a rural economy dependent on agriculture, price intervention is necessary for giving reeve prices to reeve farmers. TOTAL scheme is right step here.
— Priyanka Choudhary · AIR 79
Conclusion
24 words
Priyanka Choudhary
Agriculture and Food Security
Agricultural Pricing Policy and Subsidies
Price Intervention Schemes
256
Total words
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Paragraphs
analytical
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