Thing to note is all said & done the govt buys only 6% of the National #agriculture production for some ₹100,000cr . The total receipts of #India are at some ~₹25Lakhcr from what I understand. The govt cannot buy more without having to shut other departments down .
As far as MSP for the private sector is concerned just as it would be unfair to fix a price without profit for the farmer it would be unfair to fix a price without profit for the buyer.
Also real market prices ensure masses get to eat . MSP for paddy in 2020 is ₹1868/quintal . This gives ~37 kgs of rice as per google .Hence a per kilo price of ₹50 which is unaffordable for the vast majority of India .
That's the 2nd reason all crop cannot be under MSP.
For wheat the MSP is ₹1975 per quintal which translates into ₹21/kg of unfiltered flour . Add in packing & transport costs & each kilo will actually approach ₹27-30 .
How many households can afford this price?
If there is to be a mandate on MSP it must ensure prices that every man woman & child who does not want to stand for handouts at a PDS shop is able to procure the same at a neighborhood grocers or Vegetable vendors. That its affordable to all .
If MSP is standardized as the mandated price throughout #India it is #Farmers who will be hurt most as small scale manufacturing of all items will get more expensive to cater for requirement of increased salaries of staff . It's an unending circle .
Fact is the #punjabifarmers live better & are more prosperous than their brethren across the nation because of the inordinately high quantum of #MSP procurement which basically allows them to profit enough to hire farm labour from other states & pay for mechanised farming.
If #MSP is turned into a universal mandate it will mean the #punjabifarmers will have to pay more for things they do not grow & for everything they buy including clothes, shoes, vegetables & cooking oil . Basically wrecking their current relative prosperity .
I reiterate it is only because some 96% of produce is sold at market rates below an unviable #MSP that much of #India can eat without resorting to govt handouts.
Any Mandate on an #MSP not in line with market rates will wreck that delicate balance & push #India into penury.
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