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Demands on Legal Guarantee for MSP

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October 06, 2021

What is the issue?

The question of a legal guarantee of MSP for all crops and demands on cancellation of three farm laws continue to be the bone of contention between the protesting farmers and government.

What is the demand of farmers for a legal guarantee of MSP?

  • Most of these 23 crops are purchased by private players and there is high fluctuation in the prices.
  • Sometimes these crops are sold much below the MSP and sometimes they fetch a little more than the MSP.
  • The farmers, therefore, want a legal guarantee that crops can be sold only at MSP or above it for which the government is not ready to accept.
  • Some states have started compensating farmers for crops that they sell below the MSP rates under their own state-level policies.

Can state-level policies assure that the farmers get MSP for their crops?

  • States like Madhya Pradesh , Kerala have launched schemes like Bhavantar Bhugtan Yojna and Bhavantar Bharpayi Yojna where state governments pay the difference to the farmers when the sell their crop below MSP in the market.
  • Under these schemes, the state price or floor price are fixed by the state governments.
  • State governments cannot sustain such schemes for long and also they cannot cover all the crops.

How can it be resolved?

  • Along with the current MSP regime, corporations like Cotton Corporation of India should be formed by the centre government for cereals that are not covered under centres’ current MSP regime.
  • When such corporations cover all the crops private players will not be able to exploit farmers.
  • When such corporations cover all the crops, private players will not be able to exploit farmers.
  • It will also lead farmers to opt for diversification of crops also in states like Punjab.


Source: The Indian Expres

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