MSP: Minimum Support Price- Modi Farm Laws, Good or Bad...?
For the benefit of the farmers, the system of Minimum Support Price (MSP) has been implemented in the country.
Even if the prices of agricultural commodities fall in the market, the central government still buys agricultural commodities from the farmers at a guaranteed price. This avoids the loss of farmers.
The guaranteed price of a commodity is uniform across the country. Commission for Agriculture Cost and Prices - Ministry of Agriculture, government of india determines the guarantee based on CACP data.
Only 6% of farmers in the country get guaranteed prices and it is estimated that the proportion of farmers in punjab and haryana is higher. This is the reason why there is so much opposition to this new bill from these areas.
Experts who speak in favour of agricultural laws consider MSP to be a disease. Gurcharan Das says, "Punjab is stuck in the MSP system. It is a kind of disease. Because it provides security. The government will buy as much as I can harvest. The question is that the country does not need so much food.