Page 68 - Putting Farmers First

MINIMUM SUPPORT PRICE (MSP)

One important way of securing farmers
financially is ensuring that they have an assured
price at which their produce will be bought.
This reduces the risk related to income.

The Minimum Support Price (MSP) acts as
a safety net for farmers where it will assure
them their produce will bring them certain
income. Modi government had promised
timely increases in MSP and delivered on it
with multiple increases.

However, the difference between Modi
government and previous governments is
not merely in regular announcement of MSP
hikes but more importantly in multifold
increase in procurement of crops at MSP.

Payments to farmers in the form of MSP have
also shot up manifold, ensuring that the MSP
hikes actually benefit the farmers.

One of the most egregious falsehoods
spread about the farm reforms is related to
MSP. However, Modi government has shown
its commitment to MSP very clearly, with
multiple hikes and multi-fold increase in
procurement, including in the 2020-21 Kharif
season.

61 | Putting Farmers First