MSP is the price at which the government purchases crops from the farmers.
After two years, farmers have once again started the siege of Delhi. This time the farmers of Punjab are reaching the national capital Delhi under the banner of Kisan Mazdoor Morcha. About 250 different organizations are included in this Kisan Mazdoor Morcha. Now the question is, when the farmers' movement ended in 2021, then why are the farmers suddenly trying to come to Delhi? They have put forward 13 demands before the government. Out of 13 demands of the farmers, the government has accepted 10 demands and said that 3 demands will be considered. But there are three demands on which the government is asking to be considered.
The first one is a law guaranteeing minimum support price (MSP) for all the crops. The government sets the MSP for nearly two dozen commodities twice a year based on the recommendations of the Commission for Agricultural Costs and Prices. MSP is the price at which the government purchases crops from the farmers, providing them with assured income for their produce.
Now the question is why the Central Government is not bringing the MSP law. Like any government, the Government of India (GOI) also has some sources of income and some expenses. Every responsible government has to create a balance between these two. If expenses increase and income decreases, the country becomes bankrupt.
According to economic experts, if GOI accepts the demand of farmers for MSP law, and buys every crop at MSP, then it will increase the burden of an additional Rs 10 lakh crore on it. The Indian government spends approximately the same amount every year on the infrastructure of the entire country. That is, if the Indian government stops all the expenditure on roads, railways, hospitals and schools, then only it can guarantee MSP on every crop of the farmers. Hence, it is not practically possible to guarantee MSP on every crop.
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Apart from this, GOI does not have the capacity to purchase or store all the crops. If every crop continues to be purchased at pre-fixed MSP, it will also affect the inflation rate of the country and retail prices of food items will also increase. This is the reason economists believe that farmers should be given income support instead of MSP.
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 "DNA TV Show: Why is Centre not giving legal status to MSP?")
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