MSP: Why is It Necessary for Farmers and Common People?

These days, we all are discussing MSP in India. MSP is the minimum support price for the essential crops set up by the Government of India to purchase directly from the farmers. This law emerges to safeguard the farmer to a minimum profit for the harvest.

How many farmers receive more price than MSP?

Only 6% or less, farmers can sell their crops at a better price than MSP, so farmers request to keep the MSP.

When did MSP start in India?

The MSP system was started in 1966-67 for wheat and expanded further to include other essential food crops and then sold to the poor under the public distribution system under subsidized rate.

Is the MSP varied in states?

Due to the variation in irrigation and wages, the cost of the same crop varies from state to state. ‘it is a policy matter’. There is no draft of regional MSP, so there is one MSP for the entire country.

How many crops are covered under MSP?

Twenty-three crops cover over 80 percent of India’s total agriculture produce. These include cereals like millet, wheat, maize, paddy barley, ragi, and jowar; pulses like tur, chana, Masoor, urad, and moong; oilseeds, safflower, mustard, Niger seed, soybean, groundnut, sesame, and sunflower.

Is MSP good or bad for farmers?

We found there are a few advantages and disadvantages of MSP. Farmers and the public have to check both and accordingly can make their decision about the same.

Advantages of No MSP

• If there is no MSP, the farmer can decide their crop by himself according to his production cost and time that he gives to a particular crop.

• He will not be bound to sell the product immediately; he can wait for a little to check better prices in the market.

• The farmer can contact industries for the best price by growing the particular crop of industrialist choice.

• Farmers fear that industries will give less than the product price as there will be no minimum support price declaration by the government.

Advantages of MSP

• The Minimum Support Price (MSP) system acts as a tool for the government to control a sharp fall and rise in crop prices.

• The concept of the Minimum Support Price (MSP) system acts as a security to farmers so that their crops get the amount for their products and helps them sustain their losses, and does not affect them drastically.

• Helps government control the growth of crops that are low in production. The government can offer more price support for these crops so that more and more farmers are tempted to grow these crops with an assurance that they will recover a certain amount from the government guarantee.

• The government can use these crops to be sold at government fair price shops at a price lower than the market rate. That will also help the government make these crops available to the below poverty line people at a lower price.

Just like every coin has two sides, MSP has its own advantages and disadvantages too.