Is Minimum Support Price Effective in India? Evidence from State-wise Paddy Procurement

Aims: The paper tries to examine the effectiveness of minimum support price (MSP) policy based on empirical data deviations as well procurement paddy crops by various agencies. cost and gross margin cultivation are also analysed add further reliability overall assessment MSP policy.
 Data Methodology: is examined studying farm harvest (FHP) with respect Paddy. We have calculated FHP from for entire study period 1996-2016, where positive taken an indicator policy. Our has published Food Corporation India (FCI) Ministry Agriculture Farmers welfare. used unit-level ‘Situation Assessment Survey Agricultural Households’, 2012-13 NSSO.
 Results: found be effective in Kerala, Madhya Pradesh, Punjab but ineffective other major rice-producing states across country. And like Himachal Uttar Bihar, Assam, West Bengal, Jharkhand, Odisha, Andhra Karnataka, Tamil Nadu, a vast majority medium, semi-medium, small farmers sell their private agencies, thus making those complete failure. In such Haryana Maharashtra, large selling significant portion total marketed surplus processors.
 Conclusion: Overall, at national level, government agencies (which stands 17.2 percent) far satisfactory. implication calls enhancing farming groups rather than concentrating only medium farmers.