Do you know why is the government not guaranteeing MSP?
Reportedly according to government data, the production of 23 crops included in the scope of MSP was Rs 10.78 lakh crore in the year 2019-20. Of these, about 25 percent of the crop is kept aside by farmers for their personal needs and animals. The government does not have to pay any money for sugarcane. The money for sugarcane comes from the sugar mill. The government purchased crops worth Rs 2.7 lakh crore in 2019-20 through agencies. This is about one third of the total production. However, due to this purchase, the price of the crop increases in the market and farmers earn profits.
Perhaps MSP is always given for a 'fair average quality' of the crop. That means, only when the crop is of good quality will it be purchased at MSP, otherwise not. In such a situation, if the government has given guarantee on MSP, then how will it be decided whether the quality of that crop is good or not and what will happen to it if the crop does not meet the set criteria. Secondly, before including other crops in MSP, the government will also have to decide its budget.
Moreover many committees have suggested to the government that the purchase of wheat and paddy should be reduced. The government of india is also working on this suggestion. Now the same fear is haunting the farmers that if the government purchases less then they will be forced to sell their crops to private companies and middlemen. In such a situation, they will get less price and will suffer loss.