MSP as Legal Guarantee is a Made-for-disaster Proposal, Will Lead to Market Collapse
News 18The farmer groups are all set to converge to decide how to take forward their demand for MSP as a legal guarantee. They do not want the government to procure all the crops but just pay the differential between market price and MSP to farmers. The farmer groups are not saying that they want the government to procure at MSP, but to pay the difference whenever the market price falls below MSP. False Price, Artificial Scarcity Since the MP Bhavantar scheme led to market collapse, the suggestion has been to cap the differential so that it will not lead to price crashes. When Minimum Price is the Maximum Price Of course with MSP as a legal guarantee for all crops, the minimum support price will effectively become the maximum price that the farmers can get in the market.