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As farmers dig in on MSP, govt experts point out cons

Even as farm unions are pitching for a legal guarantee to MSP, government experts say that legalising MSP to procure 23 crops would disrupt market equilibrium, drive out private trade, and lead to inflation and a decline in agricultural exports. Officials feared that farmers would actually be hit and cited Niti Aayog’s working paper on farm reforms to argue that liberalised markets were more favourable to growth than government support and interventions in the market over a period of time.

Even as farm unions are pitching for a legal guarantee to MSP, government experts say that legalising MSP to procure 23 crops would disrupt market equilibrium, drive out private trade, and lead to inflation and a decline in agricultural exports. Officials feared that farmers would actually be hit and cited Niti Aayog’s working paper on farm reforms to argue that liberalised markets were more favourable to growth than government support and interventions in the market over a period of time. from Times of India https://ift.tt/32A4ibq
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