Were Modi and MS, Swaminathan ‘illogical’, ‘impractical’ on MSP?

Even today, only 6 to 10 percent of farmers sell their produce at the minimum support price.

The government needs to buy the produce from the market only when the prices fall below the MSP and withdraw it once the prices improve and push the market price above the MSP again.

Yadav says, according to his estimate, if MSP is increased on all crops including fruits and vegetables at the current rate, the government will probably have to spend Rs 50,000-60,000 crore.

He says that even if the government agrees to implement the more equitable formula suggested by Dr. Swaminathan, the annual procurement cost to the government will still be only around Rs 2 lakh crore.

He points out that on the other hand, the government has waived off Rs 14 lakh crore of bad loans taken by corporates and cut corporate tax, which helps business houses earn Rs 1.5 lakh crore every year.

The government may have to buy some pulses and oilseeds for distribution through the public distribution system, but the bulk of the produce will still be bought by traders, exporters, middlemen and retailers, Yadav says.

He alleged that the government was sending inappropriate messages to the media on WhatsApp and spreading misinformation on MSP.