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A riposte to those who want MSP for private procurement :
MSPs for common grade paddy and A Grade Paddy are â‚ą1868 & â‚ą1888 per quintal respectively.
It amounts to â‚ą18.6 ~ â‚ą19 per kg to farmers for 1Kg paddy.
1Kg Paddy on an avg gives 400-450 grams of saleable rice.
A riposte to those who want MSP for private procurement :
MSPs for common grade paddy and A Grade Paddy are â‚ą1868 & â‚ą1888 per quintal respectively.
It amounts to â‚ą18.6 ~ â‚ą19 per kg to farmers for 1Kg paddy.
1Kg Paddy on an avg gives 400-450 grams of saleable rice.
So it means compulsory MSP on non govt/Pvt purchase for farmers for ordinary rice will mean a payment of â‚ą19 for 400 grams or â‚ą47.5 ~ â‚ą48 for a kg to farmers.
Now consider entire logistics — transportation & warehousing cost, the wholesalers' margin and retailers' margin.
Now consider entire logistics — transportation & warehousing cost, the wholesalers' margin and retailers' margin.
A kg of ordinary rice will cost almost cost â‚ą80-85 for ordinary Indians. Is it possible ?
Ordinary Indians can't afford to pay â‚ą80-85 for a kg of ordinary rice.
So think before you demand.
MSPs will be there for govt purchase.
MSPs can't be there for private purchase.
Period.
Ordinary Indians can't afford to pay â‚ą80-85 for a kg of ordinary rice.
So think before you demand.
MSPs will be there for govt purchase.
MSPs can't be there for private purchase.
Period.
*The estimated price of â‚ą80-85 per kg for ordinary rice in case of mandating all purchase at MSP is a conservative estimate.
The price may well exceed â‚ą100 per kg for ordinary rice if we consider transportation, infra, warehousing and margins of retailers and wholesalers.
The price may well exceed â‚ą100 per kg for ordinary rice if we consider transportation, infra, warehousing and margins of retailers and wholesalers.
