India is now both wheat and rice surplus. India's MSP is about 40% higher than world wheat prices, and depending upon rice category, upto 20% higher. So any higher yield is not going to increase income of farmers because there is no domestic demand. Costlier than world market, we can't export them either. Same is the case with sugar. If government increases MSP further, that will simply be transfer of wealth from one section of population (non-farmer) to farmers with surplus. Most of the non-farmer population is poorer than farmers with surplus. So it will be immoral and economically destructive as all government forced transfer of wealths are.
The Farmer Agitation
The Farmer Agitation
The Farmer Agitation
India is now both wheat and rice surplus. India's MSP is about 40% higher than world wheat prices, and depending upon rice category, upto 20% higher. So any higher yield is not going to increase income of farmers because there is no domestic demand. Costlier than world market, we can't export them either. Same is the case with sugar. If government increases MSP further, that will simply be transfer of wealth from one section of population (non-farmer) to farmers with surplus. Most of the non-farmer population is poorer than farmers with surplus. So it will be immoral and economically destructive as all government forced transfer of wealths are.