Professor of Agriculture-ICRIER about Farm Laws

[lollilolli2020]

 

 

Mari ee professor arguments ni kuda lite tesukuntara mana DBians who are against farm laws.

#justasking  

@CanadianMalodu @Spartan @JANASENA @bhaigan @dasari4kntr @pizzaaddict @praying

[pizzaaddict]

Economics of an MSP guarantee: Experts say may be difficult given financial implications

Amidst the ongoing farmers’ protest, experts and analysts believe that a legal guarantee for minimum support price (MSP) may be difficult to implement given its financial implications and the caution that a one-size-fits-all approach may not be appropriate.

While the government has already indicated that a guaranteed MSP, which is the main demand of the agitating farmers, is not possible, official sources have indicated that if an MSP guarantee law were to be introduced, the government would be looking at an additional expenditure of at least Rs 10 lakh crore annually.

Pushan Sharma, Director-Research, CRISIL Market Intelligence & Analytics, said that if the government procures the entire production of 23 crops for which MSP has been announced, the impact will be multi-pronged. “For the exchequer, this will mean materially higher expenditure,” he said.

“Considering the government will procure only crops trading in mandis below the MSP, our calculations show it will need a working capital of about Rs 6 lakh crore in Marketing Year (MY) 2023,” he said. The agency considered 16 of 23 crops, which account for over 90% production of the field crops, for the analysis. The real cost to the government, though, will be the difference between MSP and mandi prices, which works out to around Rs 21,000 crore for MY2023, the agency said.

For farmers, it would mean cash support during times when prices plummet below MSP and freedom to sow crops of their choice.

Experts also note that though a legal guarantee on MSP may not be possible, it is unlikely that MSP will ever be withdrawn by any government, given the huge political support base of farmers. In response to the farmers’ protest, the Congress has already announced that it would provide a legal guarantee for MSP to every farmer, based on the recommendations of the M.S. Swaminathan Committee, if it is voted to power.

“This is a very complex issue and requires much more dialogue and cannot be given in one go. Further, given the diversity across states, one policy fits all approach may not work,” noted a policy observer, adding that there are several experiments that are being carried out by states, such as price deficiency payments, while there is also a debate over income versus price support.

Madan Sabnavis, Chief Economist, Bank of Baroda, notes that a legal guarantee for procurement and an annual increase in MSP by the government every year may not be feasible. “MSP is ideally a support price and is not supposed to the first choice but has to be the last resort. However, over time, it has become the first choice as MSP increases every year,” he notes.

Further, while procurement of rice and wheat is done annually by the government, it cannot be done for all crops every year.

Sunil Sinha, Senior Director and Principal Economist, India Ratings and Research said that a law guaranteeing MSP is doable but it will have severe financial implications for the government. “Once it is made into a law and is formula driven, the government will have to shell out a specified amount every year irrespective of its financial situation and without the leeway to tweak the MSP,” he said, adding that it will become a fixed expenditure like salaries and pensions.

[pizzaaddict]

3 hours ago, lollilolli2020 said:

 

 

Mari ee professor arguments ni kuda lite tesukuntara mana DBians who are against farm laws.

#justasking  

@CanadianMalodu @Spartan @JANASENA @bhaigan @dasari4kntr @pizzaaddict @praying

 

 

[trent]

If Modi can implement this law after elections it would be great for nation

[pizzaaddict]

Otherside choostey , this government is ok  to waive the bad loans of defaulters ( corporates) but not to farmers ani criticize  chestunaru. 

Modi regime's debts Rs 118 lac cr, wrote off Rs 12 lac cr corporate loans, farmers deprived

 

 

[kevinUsa]

21 minutes ago, trent said:

If Modi can implement this law after elections it would be great for nation

main issue enti ante  farming free market aitay corporates will buy farm produce for peanuts andsett them highprices in market 

[trent]

46 minutes ago, kevinUsa said:

main issue enti ante  farming free market aitay corporates will buy farm produce for peanuts andsett them highprices in market 

Vatiki kuda edo oka point petti vuntaru a law lo. Mainly Punjab and haryana are abusing this MSP

[dasari4kntr]

4 hours ago, lollilolli2020 said:

 

 

Mari ee professor arguments ni kuda lite tesukuntara mana DBians who are against farm laws.

#justasking  

@CanadianMalodu @Spartan @JANASENA @bhaigan @dasari4kntr @pizzaaddict @praying

areyre…anavasram gaa swaminathan ki bharath ratna ichhesame…next time ee professor ki iddam….

 

swaminathan formula…

How is MSP calculated?

The CACP calculates three types of production costs for every crop, both at the state and all-India average levels.

1. 'A2':

• Covers all paid-out costs directly incurred by the farmer in cash and kind on seeds, fertilisers, pesticides, hired labour, leased-in land, fuel, irrigation, etc.

2. 'FL':

• Includes A2 plus an imputed value of unpaid family labour.

CACP considers A2+FL as the cost of production and sets MSP at 1.5 times of it.

For the calculation of input costs, however, the Swaminathan Commission laid down a different formula. Along with the paid-out cost (A2) and the imputed value of family labour (FL), also included the interest on the value of owned capital assets, rent paid for leased-in land, or the rental value of owned land (C2).

 

Key difference

The government sets MSP at 1.5 times the Cost of Production (CoP), where Cop is A2+FL.

The Swaminathan Commission, however, suggests that CoP should be based on C2, proposing the 'C2+50 per cent' formula for setting MSP.

Current MSP vs. Swaminathan Formula - the difference?

Here are the estimated production costs for the Rabi marketing season 2024-25 for various crops, calculated using both A2+FL and C2 formulas by the CACP, reported byDown To Earth.

Crops	C2	MSP announced (Rs/qtl)	MSP as per C2+50%
Wheat	1652	2,275	2,478
Barley	1614	1,850	2,421
Gram	4547	5,440	6,820.5
Lentil	4890	6,425	7,335
Rapeseed & Mustard	4068	5,650	6,102
Safflower	5414	5,800	8,121

[dasari4kntr]

1 hour ago, pizzaaddict said:

Otherside choostey , this government is ok  to waive the bad loans of defaulters ( corporates) but not to farmers ani criticize  chestunaru. 

Modi regime's debts Rs 118 lac cr, wrote off Rs 12 lac cr corporate loans, farmers deprived

 

 

max quintile paina 500-1000 rupees farmer ki ivvadam more expensive anukunta than writing off rich people loans…🙃

[pizzaaddict]

13 minutes ago, dasari4kntr said:

max quintile paina 500-1000 rupees farmer ki ivvadam more expensive anukunta than writing off rich people loans…🙃

Following argument happens 

Farmers ki iyadam freebies and no use . Adhey corporates ki istey , they will circulate the money , create employment etc.  Better society , we need to encourage corporates by waiving of their bad loans. It is part of learning for corporates ( transition into profitable ventures, failures do happen)  

[dasari4kntr]

Just now, pizzaaddict said:

Adhey corporates ki istey , they will circulate the money , create employment etc.

i doubt about it…corporate always look for reducing the production and operational costs….

andharu Ratan TATA lu kaadu….

[dasari4kntr]

3 minutes ago, pizzaaddict said:

Farmers ki iyadam freebies and no use

its not freebie…fair price…

there is a difference…

[pizzaaddict]

7 minutes ago, dasari4kntr said:

its not freebie…fair price…

there is a difference…

During 2014 campaign

Modi wants 50% profit margin for farmers in MSP of agri commodities

In a bid to woo farmers, BJP's prime ministerial candidate and Gujarat chief minister on Wednesday declared that if voted to power, the minimum support price (MSP) of agri commodities would be set with 50% profit margin for farmers.

Speaking at an election rally in cotton growing belt of Surendranagar Lok Sabha seat, Modi said,"Farmers, especially in Gujarat have suffered heavily due central government policy to ban cotton export. This had led to loss of Rs 7,000 crore to Gujarat cotton farmers. Can we tolerate such policies? We need a government that is sensitive to the questions of farmers, not like government in Delhi that is anti-farmers."

"If BJP government is elected to power, I assure you that we will device a procedure for deciding MSPs of agriculture commodities. We will take into consideration expenditure made by farmers like for seeds, irrigation water, electricity, farm equipment, medicines, fertilisers and other input cost. Then over the input cost we will add 50% profit of farmers. So, if Rs 100 is the input cost, MSP will be Rs 150," Modi told the gathering. This will not lead to situation where a farmer is forced to commit suicide, he added.

[bhaigan]

16 hours ago, lollilolli2020 said:

 

 

Mari ee professor arguments ni kuda lite tesukuntara mana DBians who are against farm laws.

#justasking  

@CanadianMalodu @Spartan @JANASENA @bhaigan @dasari4kntr @pizzaaddict @praying

BJP ki udigam chesetollu nannu tag cheyakandi