Comments by "Sankalp" (@sankalp6872) on "Modi govt’s defence budget, realities, expectations — why it isn’t rising u0026 what can be done" video.

Hello Sg, Please do an episode on "Statutory MSP". Leftists are promoting it big time but it goes against all Economic theory. Why is Congress raking it? They know damn well that it will spell out the doom of India (after all they were ruling India the longest they did not do any such thing)
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@mrSamirsri I do not question their stand against the reforms. However, statutory MSP is like WMD against India.
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@mrSamirsri The meaning of the word statutory is that any purchase below MSP would be deemed a criminal offense. Think from a logical standpoint and refer Economics by Samuelson. MSP is not determined by Supply vs Demand. It is calculated on cost. In the past, it worked because India always had a shortage of food grains. Today we have a surplus over demand which pushes the prices down. A mandatory MSP would encourage farmers to increase the production of food grains without taking into account the demand. Thus pushing the surplus even further. Right now FCI procures about 6% of all grains at MSP and sells the same in the open market at a lower price thus absorbing the losses. FCI has a debt of over 2 lakh crores. One would think farmers would be better off in a statutory MSP regime. Nothing could be further from the truth. Govt cannot force purchases at MSP on traders. They'll choose not to buy. Private traders will import grains which are anyways cheaper. If the Govt bans imports then it would make the Agro-Industry bankrupt. India won't be able to export anything. It won't stop there, everything from bread to biscuits would become expensive. Remember, most Indian farmers (about 80%) own less than 5 acres. They live from paycheck to paycheck. They need cash immediately after harvest. Higher prices will only delay purchases. Private traders have patience they can wait them out. In such a situation, either the Govt will have to buy their grains or they'll be forced into distress sale. Govt buying is simply not an option. As of today, a 100% procurement would cost about 65% of the Union budget. A tall order that would drive any Govt into bankruptcy, be it of Mr. Modi or Mr. Gandhi. At the end of the day, it will turn India into Asia's Venezuela (or even worse).
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@mrSamirsri You are wrong and ill-informed. The word "Statutory" implies that all purchases below MSP would be deemed a CRIMINAL OFFENCE. It means no Trader would be able to purchase below the MSP. If he tries, he'll end up in jail. That is why all previous Govts have hesitated from making it mandatory. MRP and MSP are not the same. ALSO, Are you even aware of the consequences of "there's no compulsion to buy"? A situation where a Private trader is unable to buy because the price is too high and Govt is unable to buy because it has no money WOULD MEAN THAT THE FARMER WON'T SELL ANYTHING. Don't fall for propaganda. It is okay to like or dislike a party. Vote anyone you like but think for your own self.
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@mrSamirsri I would prefer the laws repealed over committing statutory MSP.
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@A. Pankaj You mean import.
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@mrSamirsri It's not about them. It will destroy all of us. That is why I don't mind Modi rolling back the reforms. It would be better if it keeps this bad idea at bay. Although, my gut feeling is that Modi will make these reforms optional. That way Punjabis won't be able to oppose and the BJP ruled Haryana will get an economic package. As to UP, Yogi will handle Tikait. Thakurs are the primary landowning community and they are with the BJP. Elsewhere, the reforms would be difficult to oppose because most other states don't have such large Mandi systems including Mamta's WB or Left's Kerala.
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