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‘MSP is wrong instrument to raise farmers’ income, contract farming would be better: Dr Ashok Gulati

Agricultural Income and Market Demand Dr. Ashok Gulati discusses the demand for farmers' incomes to grow, emphasizing their need for higher prices and legal guarantees. He argues that increasing MSP by 25-30% is not a viable solution due to market dynamics.

Market Access and Government Policies The discussion focuses on two ways to increase farmers' incomes: improving productivity through R&D, irrigation, farming practices; providing access to better markets in India and globally. Dr. Gulati criticizes government policies such as export bans which have negatively impacted farmer income.

Price Stabilization Fund vs MSP Increase Dr. Gulati suggests creating a price stabilization fund instead of increasing MSP, highlighting the operational challenges of implementing increased MSP across various commodities nationwide.

'New Deal' for Agriculture Reform The conversation delves into the potential benefits of contract farming in minimizing price risk for farmers while promoting growth in high-value agriculture sectors like poultry production.