Wednesday,
September 19, 2001, Chandigarh, India
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Rewarding inefficiency through the MSP The government has increased the minimum support price of paddy for the current procurement season. There are mixed reactions to this increase in the MSP. The CM of Punjab, his three Cabinet colleagues and two members of Parliament of his party have welcomed the increase whereas his FM has criticised it. Mr Mann, a BKU leader, has gone to the extent of observing that it will adversely affect the country’s economy. Dr S.S. Johl’s comments that the paddy price decision is born out of “politics”, not “economics”, negates Mr Mann’s argument. The VC of PAU, Dr K.S. Aulakh’s observations make the issue crystal clear. He has stated that farmers continued to over-invest in agriculture by going in for unwanted machinery, making farming uneconomical and unviable. Often farm loans are diverted for meeting social obligations. The farmers have almost given up personal supervision of farm operations. The over-dependence on labour has increased and, consequently, there is utter waste and wrong use of costly inputs. The comments of senior leaders and agriculture experts make it abundantly clear that the decision on the MSP for paddy is not based on merit. The concept of optimal use of input is totally absent from the farming operations thus increasing the cost of output, which simply is inefficiency. The MSP, therefore, is nothing but a reward for inefficiency and extravagance. Can someone assure the poor consumer that the government is concerned about his welfare? H. S. NIGAH, Mohali |
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