Only a Legally Binding MSP Can Really Help Farmers; We’ve Tried All Permutations and Combinations
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- Опубліковано 20 лют 2024
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In an interview where he argues very strongly in favour of a legally binding minimum support price for 23 crops, one of India’s most highly respected and well-regarded agriculture policy experts has said there is “no other way”. Devinder Sharma says: “We have tried all other permutations and combinations” and they have not really helped the farmer. Making the minimum support price legally binding is, he says, not just the only way but the best way of helping farmers.
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Sharma, Thanks for putting it straight: “Farmers do not have to SUBSIDIZE consumers.”
Thanks, Mr. Karan.
Thank you Karan for this interview.
Excellent discussions. Davinder Sharma is one of the few agri economist who is frank and honest in his opinion and is not carried away by people who have some motives and interests contrary to the welfare of farmers.
Very valid and logical things explained.
As always, an excellent interview by Mr. Thapar. I wish to make a simple point: the 50% addition to the cost of cultivation that's referred to in the MSP formula is NOT to be termed "profit". It's actually a "margin" - despite this, owing to various issues including climate, pests, the crop may fail partially or fully , causing a loss to the farmer.
Very aptly said, "Govt needs to take care of farmers and consumers first"
Devinder Sharma ji, I salute you for your pragmatic views. You have a practical approach to the problem. If the government is, really sincere to address the issue you are the best man . But I suspect the government is not interested in solving the problem
Excellent
Devinder Sharma seems more like a political actor than an " Agriculture Policy Expert", The interview with Professor Gulati was much more enlightening and informative.
Having heard both sides, I request you to come out with your conclusion. Create a comprehansive point by point analysis. You will do a great work by getting these arguments translated to hindi. Thanks and keep up the good job. 👍
This is a fantastic suggestion! And may be invite a senior bureaucrat from GOI for his view point
EXCELLENT, AS USUAL KARAN SIR!!!
Devinder Sharma is real GEM 💎
Devinder Sharma ji hats off to you sir!
Execellent clarity on the subject Mr. D Sharma.
Very good Davinder Sharma discussion thk karan thk
Professor Himanshu provided a thorough explanation of the advantages of legalized Minimum Support Price (MSP). However, I noticed here a gap in expert perspectives, with questions only partially answered and lacking substantiated viewpoints with factual evidence. Karan made significant amount of efforts to incorporate his opinions.
Amazing knowledge , Mr Sharma should head of policy maker of agriculture
He should specifically mention to make MSP for landless farmers but not those who are moneylenders and they hold sway in rural India and exploit the bonded labours and keep them into chronic indebtedness. The rich farmers should pay tax
Most of the farmers in Punjab or other states are small farmers and there income is nothing in comparison to other professions.. The MSP is to avoid exploration by traders and will benefit all the farmers of India will benefit from it .. Farming is a loosing proposition and it's the moral duty of the government to take care of farmers who made India self reliant when we used to go with a begging bowl to Mexico and America..
They are our own people and we should build a conducive atmosphere to solve the issues amicably.
There is no bonded labour in Punjab and SC community and farmers have brotherly bond in villages
How can MSP be given to landless Farmers as they have no surplus to sell in the market? He has addressed this at the end, where he points out the PMKISAN direct transfer should be strengthened to those without marketable surplus. Secondly, an increase in MSP and a legal guarantee of MSP would increase accessibility tremendously. Most farmers don't have access to APMCs precisely because they are too few in number, only one in almost 500 square kilometers. So the legal guarantee of MSP actually helps in addressing precisely the problem you are addressing.
As for taxation of rich farmers, I agree with you. It is a deficit in India's taxation policy, but not the only one, too much dependence on indirect taxes exists, and Corporate taxes are too low, while wealth and inheritance taxes don't exist. An overall review of the pro-rich bias of taxation policy should be done instead of using it solely to target farmers.
@@ABBartan most politician own agriculture land and they keep it tax free to amass wealth
@@Kim-ej2xm Not just politicians but also rich businessmen take advantage of the same. But let us not get carried away. As I said it is grounded in the Indian state's overall pro-rich political economy which partly includes rich farmers. When India's richest persons get lakhs of crores as loan write-offs annually and ruthless increases in petrol excise nourish the state exchequer, we are not dealing with a singular violation.
I disagree with last point that the government is pro consumer in urban areas as they are least bothered about household inflation and at the same time they are only interested in maximizing corporate profits.
Excellent devinder sharma sir.common mentality is People luv to see farmers poor.
Dr. Prof. Late sri B. R. Shenoy said that people can not eat tractor in the labour surplus democracies nation of the world " .
at the point around the 10:32 th minute, when karan emphasised the point that dairy and chicken sector does not have an MSP regime and are growing rapidly despite that, is WRONG in a sense that the nature of these sectors is different than the normal "everyone grows the crop at same time and reap at same time and markets are floded" flow and it's a one time sell affair for everyone, whereas for the dairy-and-other sector it's daily or monthly produce/income
karan you should read this comment of mine
i made the same point for the ashok gulati interview
Alright, after 3 episode of farmer protest, I'm crystal clear now. Thank you Dr. Sharma ji & Karan for this interview.
Thanks!
Very very well put devinder sir.... Mr. gulati is a theoretical intellectual.. where everything for him is by the book.... Ofcourse they are demanding it. Give msp on all crops , a farmer will have a choice on what to grow.
How much of the crops of other states that sell their crops in punjab and haryana.
A journalist should throw his weight for the truth, make a study for your ownself only then you can ask critical questions to people like Gulati and Ankleshwar Swaminathan Aiyers !!
It needs to be clarified that MSP is about govt buying the produce AS and WHEN the market fails.
The problem is demand and supply is disrupted. Farmers will ask for higher MSP every year and sent crops to government.
Government instead of spending money on highways will spend money on grains. ultimately leading to underdevelopment.
Sorry ! but you creating a delusion here. Why do you even assume that the farmer will ask for MSP rise every year. And BTW, this is a standardization of agriculture pricing based on a formula. Q ! What percentage of the country's population are in the agriculture sector ? Now Imagine the situation when these people will have double the money to spend ? What would they spend on ? The money will rotate ! EOD, the economy will benifit. @@deshampravesh7108
Well justified by sh.D.sharma ji, arguments favouring for MSP
Great interview..
I was checking the prices for wheat. MSP to farmer is about Rs 23/Kg and retail selling price (considering 10Kg pack) is about Rs 47/Kg. The packing, distribution plus profits of agencies between farmer and consumer is Rs 24 which is a little above the price that a farmer gets. Any idea on what is the economics of processing and distribution.
Our bureaucracy,politician, farmersbusiness must heard this interview. Video removed the fake propaganda of Govt, Thanking both
Do ask him what would be his suggestion to ensure that rice and wheat procured by the Govt and stored in FCI godowns does not overflow and rot..
Question ! Why does the Govt procure wheat and rice ? When does it rot ? What percentage of those dependent on FCI godowns are related to agriculture sector? What percentage of population in agriculture sector will see boost in income when MSP is fixed ?
Current 10% of crop purchase is still leading to feeding 80cr people plus million of tonnes of grain being rotten.
What will happen when legalizing msp will force govt to purchase 50 to 60 % of total produce. Who will manage the fallout @@mrinmoyc1191
A very good discussion. I agree with Mr Sharma. His point of view should be taken first and then shared with the economist lobby-- why should he have to defend himself.
Coupling free food given to the poor and MSP for farmers is not a good idea. The Government is providing free food because they have not generated work for people and have no income. Farmers are working on their farms and the Government is reluctant to pay them their due..
It’s govt policies that resulted in 60% of Indians to depend on food doles. No amount of gaslighting the poor will change the facts that govt has failed economic policies and designed favor only the super rich and some middle class
Who are these sort of people who are dependent on free meals ? I mean who are these people who can't generate income ? Why are they so dependent on govt ? What made them poor ?
Why isn't anyone talking about the reduction in corporate tax. So farmer shouldn't make money but businessmen should, why ? Because businessmen pay part of their profits to political parties to fund elections. Plain and simple and all these so called economists are on the payrolls.
Bang on 👍
Indians are rich as well as poor
Poor Indians are labourers , farmers with less then 2 acres land and landless farmers. Modi ji & his government shall help poor Indians and MSP SHALL BE GIVEN TO POOR FARMERS and not landlords 🙏
Where did you hear this ?
Thank you Sharma for such a clear presentation.
farmers are also the consumers of consumer goods.... we should not forget this also....
Good interview and Mr Davinder Sharma exactly specified the way farmers can be helped by way of marking MSP legal.
Degree holders don't have practical knowledge in the labour surplus democracies nation of the world.!!!????
Very informative discussion on the farmer's crisis...Good to listen Prof.Sharma...Thank you Karan and The Wire.
Devinder Sharma Ji presented the farming crisis brilliantly.
All the ridiculous arguments given by the stooge of oligarchs, Ashok Gulati, were given befitting rebuttal by him. Thanks, Devinder Ji.
So knowledgeable interview, now I know much about Farmers issues.
Legalize MSP will benefit non Punjab and Haryana farmers more, but at the same time it will help them diversify. Food production security is must for any country.
Excellent interview 🙏🏽🙏🏽
Karan Thapar thank you for this one.
Excellent interview and analysis. Farmers in the developed world gets billions of dollars in direct and indirect subsidies by their government. US, Canada, Europe, Australia, New Zealand, all OECD countries.
The govt thinking is highly influenced by foreign consultants that represent capitalist eco theories that capitalistic nations themselves have rejected in their home.
Thx
We will grant all the demands of the 'farmers'. It requires only 18L crores. The government should increase the cost of petrol to Rs300/ litre. 'Farmers' are happy, those supporting this protest are happy 😊
How did you do that calculation?
@@rohiticku Just like these 'Farmers' calculated their list of demands. If they can seek a demand of 18L cr, why can't petrol sell at 300?
Mate, I just asked how one arrived at that number. Is it based on current production? Does it account for product substitution if legally binding floor price is imposed on a set of products? The kind of distortions it would create, one just has to look at the Soviet economy to learn what happens when prices are determined by non-market signals.
@@rohiticku Economists have roughly calculated that if the government were to accept all their demands, the total burden would be in excess of 18L crores
@@longerodds5077 They are wrong. They are taking the entire cost of the crop produced.to calculate the cost of MSP. They are wrong for at least three reasons. Number one they have to take into account only the difference between market price and MSP. That is the real cost for the market. Number two, They are not buying entire produce grown. number three they are not buying everything under the MSP scheme. They are buying most of it for other schemes like free rice and wheat for 80 crore people. You can't club this under the MSP scheme. Hence it will come to something like 28,000 crores as some have calculated.
What is the crisis in agriculture? I do understand the government's bias towards consumers for last several decades.
Firstly, farmers should pay for electricity just like households. Subsidy for fertiliser should be removed. After that they can demand MSP. Then the Government should agree to it.
Good discussions. Usually in the business you look at what the end customer is paying. For this you look at the entire value chain. There are multiple agencies involved till it gets to the consumer. What are the costs and profits at each stage?
The matter of fact is that there are a percentage of population in this society that have always taken the advantage of lack of any proper regulation on our Food. The value chain has never been in the question? For generations even before independence and even before the Maharaja's. This section of people have tweaked the system in their favour for maximization of profit and restricting it to few, creating a symphony of inequality across.
The roll over in industry products annually is multiple times than that of agriculture product, hence the CC+50% is justifiable. Maybe CC+40 would be appropriate considering the inflation effect.
Need of an hour
सरकार कृषि उत्पादों के बाजार मूल्य नियंत्रित रखने के लिए कृषि उपज निकालने, बनाने वाले उत्पादन करता के उपज के दाम नियंत्रित कर रही है।
सामान्य जन को कम दामों में देना हैं बता के सरकार किसानों से उपज कम दामों पे खरीद रही और वही उपज आम जनता को किसान को चार पैसे ज्यादा मिलेंगे किसान का भला होगा, बता के महंगे दामों में बेच रही है।
If INDIA comes to power Devinder Sharma should be made Agriculture Minister, as many Indians are hoping this election is going to be India shining II as BJP will be in for a shock leave alone abkibar charso par.
Why govt doesnt allow farmers to sell thier produce to other countries when a crop is abundant here ?
Why was prof. Swaminathan given Bharat Ratna ??!!
Devender sharma impresses me and general public with clarity honesty and qualitative arguments besides concerns compression with full of empathy attitude towards poor needy and hard working kisaan. Prof gulati seems to be pro corporate market and loving agriculture expert of present ruling regime. He talks of many reforms but never say anything against modi and his policies he is shy of criticising modi thats the problem.
Why do you want to listen something against Modi
Lol. Listening this fraud instead of Ashok Gulati is laughable 😅
The person who owns land is the only one going to benefit. Give MSP and make sure land prices don’t rise.
You should have the guest name in the title so that audience knows that
Farmers do not buy electoral bonds, corporates do. So, who matters more to the govts. ?
Respected sirs...
The villain GULATI is being exposed today Karan. Congratulations for bringing in Devinder Sharma. Next, Karan Thapar, bring in P. Sainath, he will expose Gulati the villain of depriving the farmers MSP !!
Every advanced economy gives farm subsidies.Profitability in the farming industry is much less than any other industries.And food security is more important than anything else that any other industry can provide.
subsidies don't have to be in MSP. It's a terrible unfair idea. Advanced economies don't give MSP. Direct income support to all poor citizens, not only land-owning farmers is the only sensible solution.
Had Modi given up his luxury lifestyle and his projections self personification expenses which could have helped in farmers issue.
People can add up his expenses also which covers road shows hundreds of elections rallies plus events charges
What a crappy comment
Wheat sold at 20 or so,flour of the same is sold at 40 to 60 rupees per kilo! CHANA sold at 50 or so ,sells chana dal at 120 t0 150 ruppes a kilo! Who creates inflation? Who proits the most?
In industry you can put any amount of money into a firm. You can mark up your margin and sell . But in agriculture you cannot pump in any amount of money. So an average farmer has to earn decent amount to meet up his necessities, which may seem like a 50% of the cost. But to be fair is 50%of 1Lakh is equivalent to 10%of 1crore? I think that the margin or markup reffered in 19th min is RoE but is the parameter same as selling price of a farm produce? Shouldn’t the living expenses and other expenses incidental to farming deducted before arriving at a proper RoE like the deductibles in industries?
Mr Devendra, let's print money
Such a shamless guy this Devinder is ! He says if others are not demanding 50% profit, people should leave everything and do farming.
He is just trying to make a point to naysayers
If the farmers get enough money, the 800 M free rations should come down drastically
Want to ask one question to mr. Gulati...1. Why MSME SEZ ? Why tax holidays to corporates? Why soecial benefits to corporates. Exemptions? Why only exemptions and subsidies pinch for farming sector...when 80% of indian economy is dependent on agriculture sector...major employment sector...allied sectors...
Why should give importance to only punjab farmers there are other farmers in India,,,,,
It’s about all farmers it is only because farmers from Punjab are fighting this cause: they are asking MSP for 23 crops listed by the government; grown all over India.
This is just a perception being created
Bazar me 40- 50 rupay kg ka aata aur 100- 120 rupay kg ka basmati chawal bik raha he, to fir kisan se 23 rupay kg ka gehu aur 30- 31 rupay kg ka dhan kyo nahi kharida ja sakta? Ek sawal
?
Punjab farmers have been getting MSP for half a decade.
If they are still poor how does legalising it make a difference.
Such economists like Gulati ji are 'hired economists'. In Hindi ' bike huye economists'. Others are economists of WhatsApp University. Just fooling the people by manipulating the statistics. Neither do they have logic not data, just contrivances.
This person's POV is anyone who disagrees with him must be biased and wrong and any data which contradicts him must not be quoted.
Why did the previous govt rejected the same to implement in 2013 ?
Which previous government? You don’t know when Swaminathan report came, Manmohan Singh made a committee on that and modi was chair person of that, he was agree that msp is possible on all crops, why now he is denying
Main kal se apne aangan mein pathar todne jaa raha hoon.
In mahashay se request hai ki mujhe meri majdoori ki payment kar dein, chahe vo pathar unke kaam aayein ya na aayein
I can see the frustration on devinder jis tone everytime Gulati is mentioned.
👌👍
country where identity of any poor person is divided into good poor and bad poor and bad enough poor. It is confusing. there is no reason to be classist within the class. Whoever takes up noble job of providing food such as farming should be supported. Otherwise it is a problem to come again
First and formost is to fecilitate farmers to market their produce directly to buyer digitally and eleminate intermedieries. The farmer has his right to fix a price for his produce. The gov. can watch the process and contol if necessary.
The inflation argument is so wrong; more people will be in the farming. There will be more supply & prices will adjust at equilibrium.
Many western countries, first world countries, have minimum wage laws. It doesn’t mean that those countries have budget deficits or even inflation through roof.
Govt should be working for the people instead of corporate.
What is their population vs ours? What is their per capita income vs ours? And in any case fyi we too have a minimum wages act.
Just look at the Debt to GDP & inflation data for those countries
There are allied industries...even suv market is dependent on farming sector ..
You must know that 70% farmers are not selling anything rather they are also taking ration from kotedar at almost free cost. You want only to backup rich farmers who are not paying any tax rather benefitting from subsidy in fertilizer.
Unlike most agri economists Mr. Sharna talks a lot of common sense.
Give higher MsP on other crops besides rice... Watch how every farmer jumps to a new crop.
Sir, the 50% margin of C2 formula should be devided by the 6 ( assuming that the one crop takes 6 months to reach market ). Hence the profit of farmer comes 8.25%.
per month.
True, 50 percent is projected as mammoth gain. As you rightly put it ,it is just what banks pay you on FDs . Whenever MFs, Shares are bouncing ,every one jumps, that economy is growing by leaps.
There is a perpetual ,looking down on those who toil in soil to fill our table dinner under ac and dim light.
One must be gracious to the toiling billions , in far corners of the farflung country side, braving the onslaught , vagaries of nature,
pests...causing havoc to the crops,
the regularity with which one could see the fall in prices during harvest times; the tragedy of paddy, cotton , left in open,in rain and cold on streets,waiting for the procurements to arrive.
it is really a tragedy, many of our erudite economists ,continue to refuse to see and suggest a reasonable remedy, for decades to make rural India ie agriculture, to be the real ,healthy backbone.
Farming and Msme s in rural India must be the center piece of planning in India, to have prosperity to the billion lives.
When corporates have the luxury of PLI, many incentives, reduction in corporate taxes, import duty protection, could sign long term PPAs, why not MSP for farm produces.
A good exposition by Dr.Devinder Sharma. Let those who make economic policy decisions be fair and just, not lop sided so that this tormoil in country side,may soon end and peace and prosperity prevail.
Sharma ji said farmer income is 27 rs per day while 20 rs per day is the kisan samman nidhi .
So farmers were earning 7 rs per day avg before that ?
No MSP is best ... ये तो भूल ही गये
Wrong / corrupt polices of govt. have made 80 crore people are not Abel to earn their livelihood. Now economist want farmers to feeed them . Govt shall earn and spend correctly . not exploatation
If MSP was not a concern for 90% of Indian farmers, why would there be so many farmer suicides with govt hellbent on covering up the figures? Why loan waivers to famers are required (P Chidambarram waiving Rs 75000 Cr.of farmer loans at the flick of a pen with no adverse effects on the economy)? Why repeated farmer protests on the borders of New Delhi with entire farmer hoiuseholds sitting on roads with their foodstock, cooking, homes - sitting there braving out the winter, summer and monsoons (& dying in the process) at the mercy of the Govt, which can only put barriers in their way and turn off their electricity to make it all the more hard for them to survive! And the only reason being that the Govt does not want to listen to their protests & does not wish to let go of its own benefits!
There is absolutely no problem whatsoever with Central Vista, personal jets costing thousands of crores of ryupees,helicopters showering tons of flowers, mandir inaugurations, buiding collosal statues,industrialists fleeing the country with billions of rupees of investor money, horse-trading to topple govts,rigging polls, conducting rallies annd roadshows costing billions of rupees - & where do we cut to fund all of this? The farmers are denied MSP/infrastructure support in form of warehouses & refrigerated storage, the agniveer scheme designed to cut the Indian Military's wage & pension bill (at the cost of National security)....& so on & so forth......& to top it all - crime is punished only on a selective basis only dissenters and opponents are victims of punishment!
Base price of a mahindra suv is kust rs. 10 lakh but the same is sold in market at 25 lakh..how much profit is it
Kisan ekta zindabad
50 percent is nothing for weather dependent hard work business . A chaat wala margins are higher than this .