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MSP

Jan 1, 1970 12:00 AM 1 min read
Editorial

One of the poster worthy targets of the present government that has been recently announced is its intention to “double the income of farmers by 2022”. A number of schemes and policies have been put in place to make this happen - one among them is a commitment to increase the Minimum Support Price so that farmers get a 50% return over cost. On paper, these are extremely good initiatives. However, I personally am wary of any generalizations. In the particular case of ‘providing a return of 50% over cost to farmers’, a number of questions immediately pop up in my head. How is the cost for farmers calculated - i.e.

 

what are the inputs that are included? As a farmer, if I produce any crop in any amount, does the MSP policy guarantee that I will be

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able to sell all of it at a 50% margin? Who decides the MSP and how do I as a farmer sell at MSP?