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Land utilisation

  LAND UTILIZATION  Land is a scarce resource, whose supply is fixed for all practical purposes. At the same time, the demand for land for various competing purposes is continuously increasing with the increase in human population and economic growth.Land use pattern at any given time is determined by several factors including size of human and livestock population, the demand pattern, the technology in use, the cultural traditions, the location and capability of land, institutional factors like ownership pattern and rights scale regulation. Major Types of Land Utilization in India : As in all other countries, land in India is put to various uses. The utilization of land depends upon physical factors like topography, soil and climate as well as upon human factors such as the density of population, duration of occupation of the area,land tenure and technical levels of the people.There are spatial and temporal difference in land utilization due to the continued interplay of phys...

Minimum support price scheme

MINIMUM SUPPORT PRICE SCHEME

The best way to support agriculture is to invest in agri -R&D,agricultural-extension systems and connect farmers to lucrative markets,domestic and external, by building efficient value chains. 

Giving farmers their right to choose technologies and best market is fundamental to the functioning of agri-system. 

Minimum support prices (MSP) need to be made as legal instrument. 
[It means that no one is allowed to buy crop below its MSP. But if it is accepted, it will turn out to be anti-farmer. ]

Reasons 
•It ignores that prices are decided by demand and supply. 
•In case of surplus, which happens during harvest, prices fall to clear market. 
•If MSP is above market clearing price, no one from private sector will buy. 
•In this case, govt. Has to buy the farmers's produce otherwise farmers will turn to be worse off. 

The govt. Declare MSP for 23 crops where the procurement happens largely to rice and wheat. 

Why MSP crops and why not other agri produce (milk, egg)
•Instead of physical procurement, one may use price deficiency payment(PDP), implies that govt. has to pay to farmers the gap between the market price and MSP, when markets are below MSP. 
•Madhya pradesh adopted this scheme For 8 crops but gave up next year.

Ways to give better deal to farmers 
•To use income policy on per hectare basis to directly transfer money into farmers account without distorting market price.
•Identification of tenants and owners through transparency in land records. 
•Transfer the amount of PDS support in the consuners account. 
•Letting the private market flourish. 
•For food security purpose, govt. can have some stock of wheat and rice.

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