The farmers protest that rocked the entire nation had brought several demands of India's farmers in the spotlight. Among them the minimum support price that guarantees a certain price for crops has been a persistent demand, also raised at a protest in Delhi earlier this month. But NITI Aayog member Ramesh Chand says that MSP can guarantee stable prices but can't always deliver the best rates, and only competition can ensure that.
Commenting on demands raised by farmer groups for MSP as a legal right, Chand mentioned how it wants cultivators to secure top prices for crops and to protect themselves from fluctuating rates. MSP is fixed for 22 crops, and the government procures wheat and paddy to be distributed via ration shops as part of welfare schemes.
Chand also warned against becoming too dependent on the MSP, and advised farmers to take advantage of market opportunities. He added that growth is witnessed in sectors where government intervention is minimum in pricing.
Support price as a legal guarantee could work when the fair market price is higher than the MSP. But if fair market prices are below MSP, then businessmen will exit the market, creating a fiscal issue.
