18 OCT,2020 | MEDC
Protection of the MSP is at the core of the protests launched by Indian farmers against the three farm bills passed recently by Parliament. While farmers in some parts of India are protesting to protect the MSP, a section of farmers in Maharashtra wants to eliminate it. They may be having a point. Sooner or later, the market will need to play its role to decide the prices of agricultural commodities. It can be argued that the MSP has actually diminished farmers rather than empowering them. The MSP incentivizes farmers to grow a particular crop for years on end, thus weakening their resolve to leave their comfort zone and experiment with new harvests and new technologies. In the long run, many Indian farmers may not be able to maximize their financial strength if they continue to depend on the MSP as a source of guaranteed income, as it has become almost a psychological block that prevents them from exploiting their full agrarian potential. The MSP may have been well-intentioned but every idea has its time and place.
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