THE HINDU Editorial Vocabulary - July 7, 2018 - Topic 2

A political ploy: on the hike in MSPs

The Centre has cleared a hike in the minimum support prices (MSPs) for the kharif summer crop, ranging from a modest 3.7% increase for urad to as much as a 52.5% for the cereal ragi over the previous season. The NDA government says this ‘redeems’ its promise of assuring farmers a price at least 150% of the cost of production. The Commission for Agricultural Costs and Prices is said to have gone by this cost-plus-50% principle, in line with the farm sector strategy announced in this year’s Budget. 

While making calculations, it relied on estimates of input costs actually paid by farmers and the imputed value of unpaid family labour engaged in the field. Yet, the final hikes announced for some crops are even higher – with the MSP for bajra pegged 97% over estimated costs. On an average, the MSP hike notified for 17 kharif crops is about 25% higher and constitutes the biggest hike since 2013-14. All in all, the announcement is an olive branch to farmers who over the past year spearheaded widespread protests over the rural distress. With less than a year to go for the general election, the NDA government has clearly opted to reverse the abundant, inflation-weary caution it had exercised while fixing MSPs. In fact, soon after assuming office in 2014, it had even admonished State governments for granting bonuses over and above the MSPs.

Given that the MSP mechanism is primarily enforced through official procurement only for wheat and paddy, mere announcement of prices for other crops is unlikely to suffice in ensuring farmers get those returns. Anticipating this, the Budget had promised that Niti Aayog would work with the Centre and States to put a fool-proof mechanism in place so that farmers get adequate remuneration if market prices slip below the MSP. This could be through government purchases or a gap-funding mechanism whereby the difference between MSPs and market prices is transferred to farmers. Little is known on the status of this endeavour, or the Centre’s procurement strategy for this year. As things stand, the impact of these hikes on consumer price inflation is expected to vary between 0.5% and 1% by the end of 2018-19. On the other hand, the Centre’s fiscal arithmetic may not be too adversely affected if its outlay on procurement is around ₹15,000 crore, about 0.1% of GDP. But these costs could mount based on the procurement strategy and the new mechanism for MSP enforcement. While rural incomes may rise from this farm-friendly gesture, concomitant reforms to free agricultural markets are vital to prevent a distortionary effect on farmers’ choices on account of MSPs. Easing onerous stockholding limits under the Essential Commodities Act and avoiding frequent curbs on farm exports are key.

Vocabulary

Redeem: compensate for the faults or bad aspects of (something).

Example: A disappointing debate redeemed only by an outstanding speech

Synonyms: save, compensate for the defects of, vindicate

Strategy: a plan of action or policy designed to achieve a major or overall aim.

Example: Time to develop a coherent economic strategy

Synonyms: master plan, grand design, game plan, plan (of action), action plan

Estimates: an approximate calculation or judgment of the value, number, quantity, or extent of something.

Example: At a rough estimate, our staff is recycling a quarter of the paper used

Synonyms: rough calculation, approximation, estimation, rough guess, costing

Constitutes: be a part of a whole

Example: Single parents constitute a great proportion of the poor

Synonyms: amount to, add up to, account for, form, make up, compose

Spearheaded: lead an attack or movement

Example: He's spearheading a campaign to reduce the number of accidents at work

Synonyms: lead, head, front, lead the way, be in the van, be in the vanguard

Widespread: found or distributed over a large area or number of people.

Example: There was widespread support for the war

Synonyms: general, extensive, universal, common, global, worldwide

Abundant: existing or available in large quantities; plentiful.

Example: There was abundant evidence to support the theory

Synonyms: plentiful, copious, ample, profuse, rich, lavish, abounding, liberal, generous

Mechanism: a system of parts working together in a machine; a piece of machinery.

Example: The gunner injured his arm in the turret mechanism

Synonyms: machine,appliance, apparatus, device, instrument

Procurement: the action of obtaining or procuring something.

Example: Financial assistance for the procurement of legal advice

Anticipating: regard as probable

Example: She anticipated scorn on her return to the theater

Synonyms: expect, foresee, predict, be prepared for, bargain on, reckon on

Adequate: satisfactory or acceptable in quality or quantity.

Example: This office is perfectly adequate for my needs

Synonyms: sufficient, enough, requisite; acceptable, passable, reasonable, satisfactory

Endeavour: an attempt to achieve a goal.

Example: An endeavor to reduce serious injury

Synonyms: attempt, try, bid, effort, venture, go, crack, shot, stab, essay

Enforcement: the act of compelling observance of or compliance with a law, rule, or obligation.

Example: The strict enforcement of environmental regulations

Prevent: keep something from happening or arising.

Example: Action must be taken to prevent further accidents

Synonyms: stop, put a stop to, avert, nip in the bud, fend off, stave off, ward off

Onerous: involving an amount of effort and difficulty that is oppressively burdensome.

Example: He found his duties increasingly onerous

Synonyms: burdensome, arduous, strenuous, difficult, hard, severe, heavy, back-breaking