(4th April 2015 – The Hindu) Protecting the small farmer
- By 2050, India will have the largest no. of Muslims in the world (beating Indonesia)
Art. Ref. : In 2050, India’s Muslim population will be largest globally – http://www.thehindu.com/news/international/pew-study-india-muslim-population/article7064237.ece
Protecting the small Farmer
National Crop Insurance Program failed because:
- Low literacy.
- Absence of infrastructure to measure data accuracy at farm level.
- Limited penetration of formal financial credit system.
- Widely varying market prices, the scheme is unable to protect farmers against price fluctuation.
- MSP(Minimum Support Price) – x – Market distertion
- But other financial instruments to protect farmers.
FIIS (Former Income Insurance Scheme)
- Ensures guaranteed income by insuring the difference between farmer’s predicted income and the actual income.
- Predicted Income – calculated by using product of unit area yield and prices at district level.
- Introduced in 2003 but withdrawn a year later due to concerns over reliable data regarding yield and price.
- But now with present technology, can be useful
- Revived in Guajrat.
- Instrument to integrate farm level subsidies + Remove leakage in system.
Art. Ref. : Protecting the small farmer – http://www.thehindu.com/opinion/op-ed/protecting-the-small-farmer/article7065655.ece
Read the full article at the source : The Hindu (Links provided).
Comment (your views) below in not more than 300 words for each of the article. Readers can also comment on the article written by other readers.
