Instead of "Why UPA did not implement legal guarantee of MSP for 60 years", BJP spokespersons should answer demands for legally guaranteed MSP thus 👇👇
https://twitter.com/sri9011/status/1335057000133087235
A law making MSPs the legal floor price defies economic logic. The govet sets MSPs for 23 crops, but it is effective only in case of rice and wheat because it buys only these two commodities in sufficiently large quantities.
A law barring purchases of the other 21 crops below MSPs by any private trader will also, immediately, fuel high inflation. Every one percentage point increase in MSPs leads to a 15-basis point (0.15%)increase in inflation.
An MSP mechanism that ignores demand and global prices creates market distort-ions. If it is not profitable for traders to buy at MSPs, then the private sector will exit the markets. In such a scenario, the government cannot be a monopoly buyer.
Mandatory MSPs will render India’s agri- exports non-competitive because the government’s assured prices are way higher than both domestic and international market prices.
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