Thread by @sri9011

"Under the milk revolution, which gathered huge momentum under the Modi govt, milk production in India today is 50% higher than that in the US and almost 300% higher than that in China. Milk has never been a part of the MSP, so that should tell a lot about the relevance of MSP"

"The total value of all agricultural output was around Rs 40 lakh crore in FY20, while the total value of MSP operations was around Rs 2.5 lakh crore, corroborating the argument by Shanta Kumar, that only 6.25% of the agri produce is MSP-driven"

"The hard reality is that MSP matters only to a small number of farmers in states like Haryana and Punjab."

"Indeed, the MSP has skewed the agrarian economy towards a handful of crops and wreaked havoc on farm productivity and soil quality. "

"Higher prices for wheat and rice have resulted in farmers in states like Haryana and Punjab growing water-intensive crops that have immensely depleted the water table. Nearly 80% of the land in Punjab is over-exploited and the number is around 50% in the case of Haryana."

"The open-ended system of procurement by FCI ensures that it has Rs 1.5 lakh crore worth of extra food grains in its godowns, which often gets wasted if there is a bumper crop but not enough matching demand." .

"This wastage will get curtailed significantly under the new agrarian structure once new farm legislation brought in by the Modi government is put to work"

"Truth be told—while 46% of India’s farm output is not crops—it comprises milk, fishing, forestry, and fruit and vegetables (F&V). In fact, the production of F&V is greater than that of cereals, but F&V as a segment gets no MSP support, nor does milk production."

"the flawed argument that MSP is the solution to every agri problem is absolutely wrong. Despite no MSP support, the total value of annual milk production in India is anywhere between 2 to 3 times higher than that of paddy, wheat and sugarcane production, all put together".

"about 70% of Punjab’s wheat output is procured by government agencies and this number is about 85% for paddy. Contrast this with the fact that just around 10% of UP’s wheat is procured at MSP, while UP produces double the wheat Punjab does."

"While mandi prices are typically 20-50% below the MSP for most crops, the farmers from Punjab are almost completely insulated from any market-risk and, hence, farmers from Punjab have no reasons to complain whatsoever."

"A related point worth keeping in mind is that even with the MSP-based procurement intact, Punjab›s agri-GDP is rapidly slowing."

"Agri-GDP grew by 5.7% a year between 1971-72 and 1985-86 versus India’s 2.3%. Between 1986-87 and 2004-05, Punjab’s agri-GDP grew at less than 3% and post-2005, Punjab›s agri-GDP fell even further to just 1.9%, versus India’s average of over 3.5%."

"The reason for this is that MSPs are often already higher than global prices for wheat and rice. Hence, market prices or MSPs cannot rise beyond a point for these two crops."

"Other cash crops and livestock that yield significantly higher returns are not being cultivated by farmers in Punjab, while farmers in other states are doing so, thereby, dragging down Punjab›s agri-GDP number."

The above quotes are from a detailed fabulous article "Farm reforns: Demystifying MSP" wherein
@Sanju_Verma_ makes a persuasive case for" ending the MSP" without saying so in so many words. The article shows the irrelevance of MSP and it's inequitable and inegalitarian++

++ nature benefitting only 6% of farmers and that too in Punjab at the expense of taxpayers and farmers of other states.
Even the benefits to Punjab ate short-lived while the state and it's farmers are staring at long-term ruin.