Comments by "Sankalp" (@sankalp6872) on "MSP was, is and will be there in future, says PM Modi in Rajya Sabha" video.

If Agriculture is a state subject then why is Punjab Govt not legalizing MSP? Let them legalize it and demonstrate the "benefits" to farmers from a statutory MSP. If he succeeds Amrinder will become the next PM of India.
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Put the laws in the concurrent list and allow states to modify or prohibit these reforms. END THE IMPASSE, Modiji. At times people must be allowed to commit mistakes in order to learn their lesson.
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A law like that would prohibit the purchase of food below the MSP. It also means farmer's won't be able to sell below MSP. Thus, no trade would occur is Market price is below MSP. Farmers will be destroyed. MSP is calculated on cost and not on Supply-Demand. Don't get caught up in the propaganda. No Govt either of INC or BJP ever legalized MSP because they are aware it is not sustainable. However, since Agriculture is a state subject Punjab Govt can legalize MSP and let's see the results.
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Varad I am aware of it. Any law passed by the parliament supersedes everything else. The problem is not the laws but the chaos created by farmers from Punjab. That is why I recommend Center adopt an amicable resolution and give these Punjabi farmers what they want. Let Amrinder even legalize MSP in Punjab. Sometimes it is better to allow people to make their own mistakes and learn from them.
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@KunalKumar-np4ig You have no knowledge of economics. MSPs are okay as long as they serve as reference points. Legalizing them is disastrous. Agriculture is a perfectly competitive global market. Nonetheless, I couldn't agree more with your second argument. The laws should be put in the concurrent list and should be left to the states. Punjab and Haryana have robust Mandi system which works because of large Govt procurement. Elsewhere that is not the case and exploitation by middle man is rampant. As to Ambani-Adani, your knowledge is poor. They don't even have a 1% foothold in agriculture. ITC is the largest in the sector.
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@akashravi2774 It has been done in the past many times. Also, there are already a number of special provisions only for TN. Do you know TN's reservation quota exceeds the mandated 50% set by the Supreme Court? Agriculture is anyways a state subject. Thus, It would be much easier to make a case for these laws as opposed to something like NEET.
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@aj9969 First, the act did not fail in Bihar. It is misinformation spread by Rahul and others. Bihar development story began in 2005 under Nitish Kumar. All of Bihar's achievements are of the last 15 years. Second, post reforms agriculture has grown by about 5% in Bihar and its GDP by 13% more than the national average of 7.5%. Other states like MP and Gujarat which too adopted free markets have grown by 10%. In Punjab, it has grown by 1.61%. Bihar is poor for different reasons. About 86% of farmers own less than 1 hectare of land. There is a limit to what can be done in just about 1 hectare of the land but at least they should be able to sell their produce.
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@Thallium983 First, Center procures grains at MSP. So nothing will change in the Center's purchase from Punjab or its distribution to the poor. A statutory MSP in Punjab will prohibit a sale of produce below MSP within the borders of Punjab. So what is the problem? It is a part of the resolution sent by Punjab to the President. Why does Amrinder not want to do it?
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@jayanthpremachandran5571 There is no requirement of any funding to make this a law. They just have to pass a resolution in the Assembly and any sale below MSP within the borders of Punjab would be deemed criminal. Govt is not the only entity doing business with farmers. In fact, only 6% of the total produce is procured by the Central Govt. A statutory MSP will impose restrictions on private buyers that they can not buy below MSP within the borders of Punjab. Wouldn't that be great for Punjab "farmers"?
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@rajagopal57 It can be done. The state Govt has the power to fix prices within its borders. He simply has to pass a resolution and nobody in Punjab shall be able to trade below MSP. Since the Center already purchases at MSP the law is still binding to them. It is the private players who'll be forced to comply with these laws and as you already said they are non-existent. So why the fuss?
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@Thallium983 That is also the reason why an all India MSP would spell out the doom of farmers. Buyers won't have to coerce any farmer, the farmers themselves will willingly sell their produce for whatever price they are being offered. A legalized MSP will set floor prices. This will create an oversupply. Most farmers in India depend on the immediate sale of their produce to repay their loans. They also don't have a place to store their produce. In an oversupply, all farmers would compete with each other to get the product out of their fields. The trader now simply has to wait for the farmer to fall at his feet and take whatever rate he is offering. This would be illegal but nobody will complain because it is either that or the trader simply does not buy. Clearly, the latter is not an option for the farmer. I saw a protestor holding a placard and mocking Modi. The placard read "You can't download Roti from Google". Yes, you can't download it but you can order it. A legalized MSP regime will open up smuggling fronts. Traders will either legally import cheap food from abroad or smuggle it. This will further depress the demand for food grains. Farmer's won't benefit from MSP. Farmer's can only benefit by adopting free market. If they don't want to engage with Corporates, it's fine. They can set up their own Co-operatives like Amul. They can get together to grow corn, pulses, palm oil, almonds etc depending on soil suitability. Only a free market can create wealth. Govt of India should withhold these reforms in Punjab but elsewhere I hope they implement them.
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