Skewed MSP-dominated system of rice and wheat leads to overproduction of these crops.

The procurement of 23 crops on guaranteed MSP is likely to be non-feasible for the government as grain stocks with the government are already overflowing and are more than double the buffer requirement, and sometimes end up rotting. Ninety four per cent farmers in the country are deprived of the benefits of the MSP, could it be expanded beyond current levels? Need a Stable Agriculture Export Policy This is a mischievous figure! At present, Food Corporation of India procured paddy and wheat worth Rs 2.53 lakh crore for PDS (Public Distribution System) from 6 per cent farmers. Second, the government itself can buy these 23 crops at MSP but the government might pooh-pooh this demand by claiming that it would cost Rs 17 lakh crore, about 50 per cent of the Union Budget. ItРІР‚в„ўll be a mandate for private players to pay MSP rates. First, the government can declare MSP as the baseline price for the 23 crops in the market.

There are two ways that the government can provide a legal guarantee for MSP, both with severe economic repercussions. Without the legal mandate, the government is under no obligation to procure the 23 crops under MSP. A legally mandated MSP regime is likely to be neither feasible nor sustainable in the long term whereas the missed big opportunity is an export-led agricultural revolution to increase farmersРІР‚в„ў income India has to set a target to export at least 10 per cent share in the global market, which is currently at mere 2.2 per cent.Р”Р‡armers demand a law that would place an obligation on the government to make necessary interventions to ensure legal guaranteed MSP. In this context, it is important to evaluate MSP as a policy option as well as the Agriculture Export Policy (AEP)-2018, to achieve the target of decent farm income. The government has had a Minimum Support Price (MSP) for several decades now, but that has not resolved the problem of agrarian distress.

As per the available latest Situation Assessment Survey (SAS) of agricultural households by the National Statistical Office (NSO), an average agricultural household earned a monthly income of Rs 10,218 in 2018-19. The longest agitation of farmers is not just to repeal the three farm laws but also against the frustration built over the decades due to poor financial gains in the agriculture sector. Not Guaranteed MSP, an Agriculture Export Policy Can Increase FarmersРІР‚в„ў Income

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