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Awareness about Minimum Support Price and Its Impact on Diversification Decision of Farmers in India

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  • K.S. Aditya, S.P. Subash, K.V. Praveen, M.L. Nithyashree, N. Bhuvana and Akriti Sharma

Abstract

In this article, we have analysed farmers' awareness about Minimum Support Price (MSP) and its impact on diversification of crops grown in India. We used nationally representative data collected by National Sample Survey Office, 70th round data. The data revealed that only 23.72 and 20.04 per cent of farmers in the rural agricultural households in India are aware of MSP of crops grown by them in kharif and rabi season, respectively. From the results of probit model, it is inferred that MSP needs to be backed up by effective procurement coupled with awareness creation by extension system to enable more number of farmers to take benefit of this safety net. We have also explored the relationship between farmers' awareness about MSP and decision to go for crop specialization using Heckman selection model. The study shows that farmers' knowledge of MSP had not lead to specialization.

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  • K.S. Aditya, S.P. Subash, K.V. Praveen, M.L. Nithyashree, N. Bhuvana and Akriti Sharma, "undated". "Awareness about Minimum Support Price and Its Impact on Diversification Decision of Farmers in India," Asia and the Pacific Policy Studies 201737, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:appswp:201737
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    References listed on IDEAS

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    1. Frank Ellis, 1998. "Household strategies and rural livelihood diversification," Journal of Development Studies, Taylor & Francis Journals, vol. 35(1), pages 1-38.
    2. Tripathi, Ashutosh Kumar, 2012. "Agricultural Price Policy, Output, and Farm Profitability—Examining Linkages during Post-Reform Period in India," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 10(1), pages 1-21, June.
    3. Ashutosh Kumar Tripathi, 2013. "Agricultural Price Policy, Output, and Farm Profitability—Examining Linkages during Post-Reform Period in India," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 10(1), pages 91-111, June.
    4. Brajesh Jha & Amarnath Tripathi & Biswajit Mohanty, 2009. "Drivers of Agricultural Diversification in India, Haryana and the Greenbelt Farms of India," Development Economics Working Papers 22922, East Asian Bureau of Economic Research.
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    Cited by:

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    2. Praveen Koovalamkadu Velayudhan & Alka Singh & Girish Kumar Jha & Pramod Kumar & Kingsly Immanuelraj Thanaraj & Aditya Korekallu Srinivasa, 2021. "What Drives the Use of Organic Fertilizers? Evidence from Rice Farmers in Indo-Gangetic Plains, India," Sustainability, MDPI, vol. 13(17), pages 1-13, August.
    3. Shahin Ghaziani & Gholamreza Dehbozorgi & Mohammad Bakhshoodeh & Reiner Doluschitz, 2023. "Identifying Loss and Waste Hotspots and Data Gaps throughout the Wheat and Bread Lifecycle in the Fars Province of Iran through Value Stream Mapping," Sustainability, MDPI, vol. 15(10), pages 1-24, May.
    4. Sukhwinder Singh & Andrew D. Jones & Ruth S. DeFries & Meha Jain, 2020. "The association between crop and income diversity and farmer intra-household dietary diversity in India," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(2), pages 369-390, April.
    5. Morales, Luis Emilio & Balie, Jean & Magrini, Emiliano, 2021. "How has the minimum support price policy of India affected cross-commodity price linkages?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(2), February.
    6. Jingdong Li & Weidong Liu & Zhouying Song, 2020. "Sustainability of the Adjustment Schemes in China’s Grain Price Support Policy—An Empirical Analysis Based on the Partial Equilibrium Model of Wheat," Sustainability, MDPI, vol. 12(16), pages 1-22, August.
    7. Min Su & Nico Heerink & Peter Oosterveer & Tao Tan & Shuyi Feng, 2021. "Impacts of China’s Minimum Grain Procurement Price Program on Agrochemical Use: A Household-Level Analysis," Agriculture, MDPI, vol. 11(10), pages 1-20, September.
    8. Kurup, Suresh A. & Reddy, A. Amarender & Singh, Dharm Raj & Praveen, K.V, 2021. "Risks in Rainfed Agriculture and Adaptation Strategies in India: Profile and Socio-Economic Correlates," 2021 Conference, August 17-31, 2021, Virtual 315127, International Association of Agricultural Economists.
    9. Wei Wang & Chongmei Zhang & Jiahao Song & Dingde Xu, 2021. "The Impact of Target Price Policy on Cotton Cultivation: Analysis of County-Level Panel Data from China," Agriculture, MDPI, vol. 11(10), pages 1-18, October.
    10. Srinivasa, Aditya Korekallu & Praveen, K.V. & Subash, S.P. & Nithyashree, ML & Jha, Girish Kumar, 2021. "Does a Farmer’s Knowledge of Minimum Support Price (MSP) Affect the Farm-Gate Price? Evidence from India," 2021 Conference, August 17-31, 2021, Virtual 315205, International Association of Agricultural Economists.

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    Keywords

    agricultural policy; crop diversification; Minimum Support Price; crop specialization;
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