Is MSP a solution to farm distress?

Clearly, regardless of whether protesting farmers succeed in getting an MSP guarantee from the government or not, here are three broad things one must remember when it comes to Indian agrarian distress: MSPs are short-term palliatives; they are not a sustainable solution for all of Indian agriculture.

Is MSP economically feasible?

In India, the percentage of people involved in agriculture is far higher, and they are far more economically distressed than any Western country. A legally mandated MSP regime is likely to be neither feasible nor sustainable in the long run.

Has MSP been removed?

“I want to assure farmers that the minimum support price (MSP) and APMC (Agricultural Produce & Livestock Market Committee) will continue. These will never be removed at any cost,” Union Minister Rajnath Singh said.

Why should MSP be Legalised?

‘Legalising MSP will ensure crop diversification too’ If MSP as a bench mark is ensured, the state government can really push farmers out of the wheat-paddy cycle and the focus can be shifted to growing maize, pulses and other crops, Lakhwinder Singh said.

Is minimum support a price?

Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.

What are the advantages and disadvantages of MSP?

The system of Minimum Support Price (MSP) system acts as a tool for the government to control sharp fall and rise in the prices of any crops. This helps keep a floor price which does not let the prices fall below a certain point. This can also be used as a tool to control inflation by way of rising prices.

Is MSP necessary?

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.