Sale of various kharif crops below MSP

- If farmers are getting lower prices, is there any point in declaring MSP and increasing it on whey?

Currently, international prices of agricultural commodities are high, but fresh kharif crops are being sold in the country at lower prices than the minimum prices set by the government. Official farm price data for October showed that various kharif crops were sold at an average of 3% less than their fixed Minimum Support Price (MSP). However some crops like cotton and sugarcane were exceptions. Oilseed crops like groundnut and soybean have also seen a rebound in recent months. But the government reversed this trend by gradually reducing the basic import duty on important imported edible oils.

It is true that after the harvest, when crop sales are at an all-time high, it is natural for prices to fall, but this year, due to farmers' agitation, it has attracted more attention. One of the two main demands of the agitating farmers is that MSP should be made legal. His second demand is to repeal three new controversial agricultural laws. Keeping prices of agricultural products low to keep inflation low for the benefit of consumers prevents producers i.e. farmers from getting fair prices. This disturbs the very desired balance of interests of consumers and producers. It affects the income associated with agriculture.

Given the current situation, the concept of support price has come under question. What does it mean to declare MSP regularly for more than 50 crops and to increase it from time to time, if it is to remain on paper then it needs to be declared? A recent national report on the state of agriculture released by the Office for National Statistics shows that only 4.5 per cent of the total production is sold at a price higher than the MSP. This situation is not fair. In particular, more than half of the total households in the country depend on agricultural income in whole or in part for their livelihood. There is no doubt that the demand to make MSP a legal right cannot be heeded. It is neither practical nor can it bear the financial burden. The government cannot be expected to buy the entire market crop on MSP. Private traders cannot be asked to do the same. But not getting a fair price for the produce to the farmers is also not good from economic and social point of view. Ways and means have to be found to rationalize the return of agricultural produce. From this point of view, it would be appropriate to re-introduce the Kisan Income Protection Scheme, which was started in 2012, which was removed without proper scrutiny.

It is difficult to appease disgruntled farmers unless there is a way to make farming economically viable.