MSP isn't being scrapped, but it probably should for certain items like Wheat.
Why? Because:
~India produces more wheat than it needs
~There is no potential to export wheat since the MSP (Rs 1975 per quintal) is 40% higher than the international rate (Rs 1400 per quintal)
Why? Because:
~India produces more wheat than it needs
~There is no potential to export wheat since the MSP (Rs 1975 per quintal) is 40% higher than the international rate (Rs 1400 per quintal)
Who pays for this? Us of course!
Furthermore, yields will continue to increase due improving seed quality, and further widen the gap between demand and supply, thereby further increasing the burden on the taxpayer to procure the extra wheat at MSP.
Furthermore, yields will continue to increase due improving seed quality, and further widen the gap between demand and supply, thereby further increasing the burden on the taxpayer to procure the extra wheat at MSP.
Where is the most Wheat procured from at MSP? Punjab & Haryana, who both levy around 15% cess on the selling price.
Who gains? The State Govts and those closely related to the functioning of the APMCs of course! The net result for farmers is more or less the same due to taxes.
Who gains? The State Govts and those closely related to the functioning of the APMCs of course! The net result for farmers is more or less the same due to taxes.
Just to keep their gravy train going, farm-owners, middlemen and politicians in Punjab want to keep this unsustainable façade up and running.
The FCI is running massive debts to cover the procurement prices for wheat we don't need and can't even export.
business-standard.com.
The FCI is running massive debts to cover the procurement prices for wheat we don't need and can't even export.
business-standard.com.
APMCs aren't being abolished, but it's high time they are. The only way to realise the mission of doubling farmers' income would be to abolish the unfair Mandi taxes levied upon their products, which is paid for by taxpayers (MSP) and which is milked by the APMCs & State Govt.
But is that a solution? Probably not.
The natural progression for any developing country aspiring to become a developed one is to shift from an agricultural-based economy to an industrial & eventually service-based economy. We skipped the second part altogether.
Continued..
The natural progression for any developing country aspiring to become a developed one is to shift from an agricultural-based economy to an industrial & eventually service-based economy. We skipped the second part altogether.
Continued..
High time to disincentivize agriculture as a livelihood altogether. This will break:
~Political lobbying power of farmer unions
~Liberate farmers from exploitation by union leaders
~End the cycle of farmer appeasement through subsidies & waivers
~Give infra returns on our taxes
~Political lobbying power of farmer unions
~Liberate farmers from exploitation by union leaders
~End the cycle of farmer appeasement through subsidies & waivers
~Give infra returns on our taxes
Enough is enough. By putting farmers on the same pedestal as jawans, we've been guilt-tripped into funding politicians & others who skim every scheme/benefit aimed at the actual peasant class farmer.
India's agricultural sector is nothing but legalised & institutionalized loot.
India's agricultural sector is nothing but legalised & institutionalized loot.
Special thanks to @anuragsingh_as's insightful thread for some of the key data points highlighted above.
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