New Delhi: Excessive focus on cultivation of crops like wheat, rice and sugarcane in many procurement states, as these mainly drive the minimum support price (MSP), has led to distortion of cropping patterns, the Niti Aayog has noted.
Continuous sowing of these crops has led to depletion of water resources and soil degradation. To remove distortion in the MSP system, the government think tank has suggested the introduction of ‘Price Deficiency Payment’ system.
Under it, a subsidy would be provided on other targeted produce in case the price falls below an MSP-linked threshold.
This approach, the Niti Aayog in its future roadmap for agriculture sector has suggested, will not require procurement and thereby prevent accumulation of unwanted stocks.
More importantly, it would spread price incentives to producers in all the regions and all the crops considered important for providing price support.
