The total rice production value in India is 3.2 rupees. According to the MSP
MSP, the total rice production value in India is 3.2 rupees. (Source: Twitter) The
farmers’ union protesting at the Delhi border makes two basic demands. The first is about the abolition of the three agricultural reform laws enacted by the Center. The second is to provide a legal guarantee of the lowest support price (MSP) that the center sets annually for various crops. Currently, there is no legal basis for these prices or any law requiring their implementation. What would happen if the government accepted the demands of the farmers’ union?
How to make MSP legally binding? There are two ways to do this.
The first is to force individual buyers to pay. In this case, you cannot buy crops below MSP. It also serves as the lowest bid for a Mandy auction. There is already a precedent. In the case of sugar cane, the factory is required by law to pay the producer a “fair and rewarding price” for the center. Uttar Pradesh and Haryana have set higher “government recommended prices” within 14 days of delivery. In other cultures, there is no pressure to apply the government-predicted MSP push to private commerce and industry.
Explanation | When Congress passed laws, but the government did not enforce them.
Of course, the second way is for the government itself to buy all the crops that the farmers provide to the MSP. In 1920, government agencies (Indian Food Corporation, Indian Agricultural Cooperative Marketing Federation, Indian Cotton Corporation (CCI)) raised about 140,834 rupees and 75,060 rupees worth 77.34 million tonnes (mt) of rice and 38.99 tonnes of wheat. .. At each MSP. They also had 105.23 Rakı cotton bales (MSP value of Rs 28,202 chlores in raw Kapa), 2.1 tonnes of Chana or chickpeas (Rs 10,238 chlores), 0.7 tonnes of Aha or Pigeon pea (Rs 4,176) respectively. I bought chlore) and peanuts (Rs4,176 chlore). Rs 3,614 chlore), 0.8t rapeseed (Rs 3,540 chlore), 0.1mt mung bean or green gram (Rs 987 chlore).
But how much produce can the government buy from MSP? MSP is currently applied to 23 produce: 7 grains (paddy, wheat, corn, vajra, jowar, lagoon, barley), 5 legumes (chana, rape, mung, urad, Masur), 7 Oilseeds (peanuts, soybeans, rapeseed). , Sesame, sunflower, niger seed, safflower) and 4 crops (sugar cane, cotton, copra, raw jute).
Minimum Support Price, MSP, Farmer Protest, MSP Demand, Farmer MSP Demand, Farmer Demo MSP, Farmer Demo, Farmer Protest, Farmer Protest Delhi Border, Farmer Protest News, Indian Express Description
Production MSP value. The graph shows that the MSP value of the total production of 23 crops in 2019 is about Rs.10.78crore20. However, not all of these products are for sale. Farmers hold some of it for their consumption, for sowing the next season, and also for feeding their animals. Market surplus rates for various crops are estimated to be less than 50% for lagi, less than 6570% for vajra (pearl millet) and join (sorghum), 75% for wheat, 80% for paddy fields, 85%, and 90% for sugar cane. It has been. Most crops are legumes, with more than 95% cotton, jute, soybeans, and sunflowers. If you take an average of 75%, it will be a little over 8 rupees. This is the MSP value of production, which is a marketable surplus that farmers actually sell.
So is this the money the government has to spend to ensure that farmers receive the MSP?
Not so. To start with, one must exclude sugarcane from the calculations. The onus for paying cane MSP, as earlier pointed out, lies on sugar mills and not the government. Secondly, the government is already procuring many crops – especially paddy, wheat, cotton, and also pulses and oilseeds. The combined MSP value of the procured quantities of these would have exceeded Rs 2.7 lakh crore in 201920.
Thirdly, government agencies don`t have to buy every single grain that comes to the market. Eliminating one-quarter or one-third of market arrivals is usually sufficient to boost prices. CCI will pick up cotton that has procured 87.85 racvales from the predicted crop of 358.50 racvales this year (October 2020, September 2021) so far. With the intervention of state-owned enterprises, Kapa’s open market price has exceeded MSP in most Mandis, eliminating the need for official purchases.