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Bumper Production: Boon or Bane

Bumper crop production can initially benefit consumers by increasing food supply and lowering prices, but ultimately hurts farmers. While bumper crops are unusually large harvests due to optimal growing conditions, the resulting plunge in crop prices reduces farm income and land values. This pushes some farmers into failure. To protect farmers during bumper years, the Indian government sets a minimum support price to guarantee purchasing crops from farmers, regardless of the low market price caused by oversupply. However, bumper production still affects many stakeholders in the agriculture industry, including farmers, consumers, organizations with commercial interests in farming, and regulators.

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38K views3 pages

Bumper Production: Boon or Bane

Bumper crop production can initially benefit consumers by increasing food supply and lowering prices, but ultimately hurts farmers. While bumper crops are unusually large harvests due to optimal growing conditions, the resulting plunge in crop prices reduces farm income and land values. This pushes some farmers into failure. To protect farmers during bumper years, the Indian government sets a minimum support price to guarantee purchasing crops from farmers, regardless of the low market price caused by oversupply. However, bumper production still affects many stakeholders in the agriculture industry, including farmers, consumers, organizations with commercial interests in farming, and regulators.

Uploaded by

Aafia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Bumper Production: Boon or Bane

INTRODUCTION:
The word ‘bumper’ means ‘something unusually large. The term
bumper crop has been used for generations to refer to an ample
crop yield. It is also used to denote a lack of storage space such as in
a barn, silo, or grain bin.
In agriculture, a bumper crop is a large crop of agricultural produce
that has been produced under optimal, yet rare, conditions, such as
abundant rainfall, a mild spring, an unseasonably long summer, an
unexplainable lack of pest infections, or a mild, frost-free autumn.
In agriculture, a Bumper Crop is a crop that has yielded an unusually
productive harvest.
A bumper crop can also be a source of problems such as where it can
reduce storage leading to insufficient storage space for grains.

The unexpected crisis of bumper production:


Bumper production benefit the end users since they are able to get
the food products at affordable prices and able to reduce their food
expenses. The food inflation is also under control because of rise in
food grain production.
However, bumper crops ultimately hurt farmers. Low commodity
prices put additional downward pressure on the value of already
deflated farm land, reducing farm asset value, increasing the farmers
‘ debts and pushing more farmers to the brink of failure. Bumper
production which was introduced as a boon turned out to be a bane.
Bumper production has led to the prices of plunging and forcing
farmers into the depths of despair.
The fall in the income or revenue of the farmer due to bumper crop
production is due to the fact that with greater supply, the prices of
the crop decline drastically and in the inelastic demand for them
brings fall in the income of the farmers. An increase in the farmers
supply tends to lower the price of the crop.

Minimum Support Price (MSP):


Minimum Support Price (MSP) is the price set up by the Government
Of India to protect the producer/ farmer against excessive falls in
price during bumper production years.
The major objective is to protect the farmer from distress sales and
to produce food grains for its distribution to the public.
The government guarantees to purchase the farmers produce, no
matter what the market price is. The MSP is announced at the
beginning of the agricultural season- Rabi (Winter) and Kharif (Rainy)
seasons.
The Commission for Agricultural Costs and Prices (CACP)
recommends the MSP for 23 crops (14 Kharif crops, 6 Rabi crops as
well as Sugarcane, Jute and Copra) before the commencement of the
sowing season. The Food Corporation of India (FCI). State agencies
and co-operatives obtains crops.

The Affects On Stakeholders:


Food is widely distributed around the world so, any issue regarding
agriculture affects a large and scattered range of consumers. The
complexity of agricultural land use and food production systems also
means that many different organisations have commercial or
regularity interests in farming and it has its possible health effects.

Advantages of Bumper Production:


The advantages of bumper crop production are:
•Bumper crop production is a symbol of production harvest.
• Bumper crop production is associated with wealth as the farmers
earns a lot of profit.
•Bumper crop not only benefits the farmers, but the consumers are
also benefited, as the crop is available in plenty.
• Also, the price of the crop reduces, due to the increased availabilty

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