Why Agri-Economist Ashok Gulati Is NOT In Favour Of MSP Law
SwarajyamagFeb 21
India Farmer Protest to Resume After Failed Talks
The Facts
Following failed talks over crop prices, Indian farmers have announced the resumption of their march to Delhi, saying the guaranteed floor prices offered by the government for pulses, maize, and cotton were "not in their interest."
The protesters, whose march was stopped by the police last week, want a minimum support price (MSP) on all crops. They have used kites and slingshots to deflect tear gas-dropping drones and are preparing to use bulldozers against barricades.
The Spin
Right narrative
MSP law is not the solution. Since supply and demand vary through seasons, once the demand is met through buying based on MSP, the rest of the crop can be rendered useless. Farmers will wind up bearing the brunt since those buying at prices lower than MSP amid weak demand could be punished by law.
Left narrative
The BJP must implement the cost-effective and fair MSPs that farmers deserve. The truth is that farmers would only produce enough to meet supply, and thus only profit from MSP. What the government actually wants is to keep prices low so that labor costs remain low to benefit business elites. If the BJP offered workers liveable wages, these protests would go away.
Nerd narrative
There's an 85% chance that the BJP will form the government after the next Indian general election in 2024, according to the Metaculus prediction community.
