Business Today

Pipe Dream

- – Joe C Mathew

CLAIMING INDIAN

farmers would benefit to the tune of ` 62,635 crore, the Narendra Modi government increased Minimum Support Prices (MSP) for crops to be grown this winter. These would be sold in 2019 – when there is a general election to be faced. The increase in wheat MSP has been ` 105 per quintal, while safflower and lentil (masur) where FPI sell-off intensifie­s were raised by ` 845 and ` 225 per quintal. If the entire quantity of crops produced this winter is purchased at the government fixed MSP, farmers will indeed benefit; but this is unlikely. Except for wheat and paddy, government, agencies rarely lift other crops (such as pulses or oilseeds) in those quantities. Meanwhile the market price isn’t also on par with MSP. The higher MSP might end up proving a cause of disagreeme­nt, and it is high time the government realises this.

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