March 11, 2021

Day 106

Toll 286

#FarmersProtest

MSP and Fuel Price

Realistically, what is the cost of guaranteeing Minimum Support Price and does the government have funds for it?

Indian Express reports, Jan 30, 2021 that all said and done, the cost of guaranteeing MSP to farmers, may not be more than Rs 1-1.5 lakh crore per year. The chart shows that the MSP value of the total production of the 23 crops worked out to around Rs 10.78 lakh crore in 2019-20.

Not all this produce, however, is marketed. Farmers retain part of it for self-consumption, seed for the next season’s sowing and also for feeding their animals.

Hindustan Times reports, March 8, 2021, citing Oil Minister Dharmendra Pradhan’s reply in Parliament, tax collected on the petrol and diesel was Rs 2.13 lakh crore in 2019-20 and swelled further to Rs 2.94 lakh crore in the first 11 months of current fiscal year. See story in comments.

There is your answer. The government already earns more than twice it will need to spend if MSP is legalised. Ask yourself, what is stopping the government from legalising MSP?

To me it is loot, greed, pure bias against agrarian India which until now was divided over caste and religion and is now coming together through the farmers protest.