Why MSP Is Necessary? (In Simple Words)
India is an agricultural country, but farmers often do not get the right price for their produce. Due to extreme market uncertainty and the dominance of traders, the Minimum Support Price (MSP) becomes essential for farmers.
1) MSP is necessary to cover the farmer’s production cost
Seeds, fertilizers, pesticides, labour, water, diesel, transportation, land rent — even after spending on all these, the market price is often so low that the farmer cannot recover his basic cost. MSP ensures cost + reasonable profit.
2) MSP is necessary due to unstable market prices
Market prices rise one day and crash the next. Trader cartelization, oversupply, import-export changes, and international market situations affect prices. MSP acts as a minimum guaranteed floor price for farmers.
3) MSP protects farmers from trader exploitation
In many markets, traders cheat by reducing rates, rejecting produce due to moisture, or delaying payments. With MSP, the farmer gets a basic guaranteed rate and is not dependent on trader mercy.
4) MSP ensures stable income for farmers
Farm income is highly uncertain. MSP gives stability. It reduces debt burden and helps farmers plan their next crop confidently.
5) MSP is important for national food security
The government purchases food grains for PDS, ration shops, and Mid-Day Meal schemes at MSP. Without MSP, the government’s food stock system will collapse.
6) The C2 + 50% formula makes MSP fair
The Swaminathan Commission recommended that MSP should be calculated as C2 cost + 50% profit. This formula ensures a fair and livelihood-supporting income for farmers.
Conclusion
MSP is a protective shield for farmers. It is crucial for national food security and the rural economy. MSP is not just a price — it is the farmer’s right.
Author: Arun Ramchandra Pangarkar
Shramik Kranti Mission – Voice of the Poor
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Tags: agriculture, farmers, MSP, farming-policy, rural-economy
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