“If farmers survive, the nation thrives. But without fair prices for their produce, how will the future of agriculture sustain itself?” Dr. M.S. Swaminathan

India’s agrarian economy hinges on the Minimum Support Price (MSP), a policy designed to shield farmers from the unpredictability of market forces. According to the National Sample Survey Office (NSSO), more than 50 per cent of Indian farmers are in debt, with a significant portion struggling to recover even their basic input costs. Theoretically, MSP is a government-mandated minimum price meant to ensure that farmers receive fair compensation for their produce. However, in practice, this policy often remains a distant reality. For millions, MSP is like a mirage ~ real and beneficial for a select few but elusive for the majority who are left to negotiate with middlemen and an unregulated market. This raises a crucial question: is MSP genuinely a safeguard for farmers, or is it merely a political instrument wielded to secure the agrarian vote bank? A closer look at MSP implementation reveals stark disparities.

Advertisement

The Commission for Agricultural Costs and Prices (CACP) recommends MSP for 23 crops, including rice, wheat, pulses, oilseeds, and cotton. However, procurement remains highly skewed. The Food Corporation of India (FCI) and state agencies procure around 85 per cent of the rice and 74 per cent of the wheat produced in Punjab and Haryana at MSP, ensuring financial security for farmers in these states. In contrast, in states like Bihar, West Bengal, Odisha, and Assam, where procurement infrastructure is weak or nearly absent, farmers often have no choice but to sell their produce to private traders at prices much lower than the declared MSP.

Advertisement

The Shanta Kumar Committee Report (2015) estimated that only 6 per cent of Indian farmers benefit directly from MSP procurement, leaving the vast majority vulnerable to market fluctuations. This inequality extends beyond staple grains. Despite consistent increases in MSP for pulses and oilseeds, actual procurement is dismal. For instance, in the 2022-23 marketing season, while the MSP for mustard was set at Rs 5,450 per quintal, farmers in Rajasthan and Madhya Pradesh were often forced to sell at Rs 4,500-4,800 per quintal due to inadequate government procurement. Similarly, the Cotton Corporation of India (CCI) has often been unable to procure........

© The Statesman