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Explained: Why it is an underestimate to express just 6% farmers take advantage of MSP

It could be fairly inferred that the present MSP/assured cost system covers 25 million-plus farmers across all crops, including pulses and oilseeds. The real quantity could be ranging from 15 percent and 25 percent.

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“Only 6% of Indian farmers reap the benefits of minimal support rates (MSP)”. Therefore widely-quoted is this figure — particularly within the context of this recently-passed Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act — so it is actually a factoid if not truism.

What exactly is, is not counted

The obvious supply of the 6% figure could be the Shanta Kumar-headed High amount Committee on Restructuring of Food Corporation of Asia (FCI). Its report, submitted in January 2015, had noted that just 5.21 million of this country’s total calculated 90.20 million households that are agricultural 2012-13 had offered paddy and wheat to your federal federal government procurement agency. Put simply, significantly less than 5.8per cent. The committee, in turn, based its analysis regarding the nationwide test Survey Office’s (NSSO) ‘Key Indicators of Situation of Agricultural Households in Asia’ report when it comes to 2012-13 farm 12 months (July-June).

The Shanta Kumar panel, but, seemed just at paddy (un-milled rice) and wheat. While most of general general public procurement is, without doubt, restricted to those two cereals — the 76.49 million tonnes (mt) of paddy and 38.99 mt of wheat purchased by FCI and state agencies in 2019-20 had been well worth nearly Rs 215,000 crore at their particular MSPs — you have to additionally take into consideration other plants. Okumaya devam et

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