Budget: To get better prices, MSP flaws will have to be removed; inflation is a sensitive issue in terms of poverty
Budget: According to an SBI report, there are many flaws in the current MSP system. Whatever politicization is happening on this, there is a need to find an alternative, because the current MSP policies reduce trade and export competitiveness.
The government can present the minimum support price (MSP) in a new way to reduce the fiscal burden and get farmers a better price for their crops. Also, there can be a provision to include private companies in the purchase to increase the income of farmers.
According to an SBI report, there are many flaws in the current MSP system. Whatever politicization is happening on this, there is a need to find an alternative, because the current MSP policies reduce trade and export competitiveness.
The government can announce the creation of a comprehensive credit guarantee fund for agriculture-related sectors along with launching the Livelihood Credit Card (LCC). This will help in meeting the financial needs of small and marginal farmers easily.
The GYANs announced earlier by Prime Minister Narendra Modi are for... poor, youth, food providers, and women. These four will definitely be discussed in the budget. Apart from this challenge of unemployment, inflation is directly related to these four, as the kitchen budget of the common man has deteriorated. Along with this, high food inflation has increased the concern of the government and RBI.
Retail inflation rose to its four-month high in June, which was otherwise soft during the past three months, prior to the sharp rise in vegetable and other food items; wholesale inflation reached the highest level in 16 months. This has also affected family savings.
Apart from the budget of the common man, inflation is also a very sensitive issue in terms of poverty. The government claims that in the last 10 years, 25 crore people have come out of the Multidimensional Poverty Index. Dr. Kohli says that these people have now come into the lower middle class. If they are hit even a little by inflation, they can go below the poverty line again. Therefore, the government will have to take some such steps in this budget, so that these 25 crore people do not accidentally reach the same situation again.
