Thread :
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.
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.
*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.
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