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UTKARSH K. SHAHI Profile picture
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2 Dec, 4 tweets, 1 min read
Thread :
A riposte to those who want MSP for private procurement :
MSPs for common grade paddy and A Grade Paddy are ₹1868 & ₹1888 per quintal respectively.
It amounts to ₹18.6 ~ ₹19 per kg to farmers for 1Kg paddy.
1Kg Paddy on an avg gives 400-450 grams of saleable rice.
So it means compulsory MSP on non govt/Pvt purchase for farmers for ordinary rice will mean a payment of ₹19 for 400 grams or ₹47.5 ~ ₹48 for a kg to farmers.
Now consider entire logistics — transportation & warehousing cost, the wholesalers' margin and retailers' margin.
A kg of ordinary rice will cost almost cost ₹80-85 for ordinary Indians. Is it possible ?
Ordinary Indians can't afford to pay ₹80-85 for a kg of ordinary rice.
So think before you demand.
MSPs will be there for govt purchase.
MSPs can't be there for private purchase.
Period.
*The estimated price of ₹80-85 per kg for ordinary rice in case of mandating all purchase at MSP is a conservative estimate.
The price may well exceed ₹100 per kg for ordinary rice if we consider transportation, infra, warehousing and margins of retailers and wholesalers.

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8 Sep
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