Comments by "Sankalp" (@sankalp6872) on "Mahapanchayats will be held across India until govt accepts farmers’ demand: Rakesh Tikait" video.

This is now getting out of hand. GoI has already withheld the reforms and now these people are demanding "statutory" MSP for all perhaps under the influence of Yogendra Yadav. A statutory MSP will be disastrous for everyone. It would criminalize purchase below MSP essentially setting floor prices and increasing the surplus that nobody would buy and Govt of India will end up bankrupt and we Indians will end up with hyperinflation. Farmers themselves will suffer because there is no way GoI can buy all the crops ( It would cost nearly 60% of India's budget) thus it would force them into a distress sale (assuming they are even able to make a sale given that purchase below MSP would be a criminal offense). ROLLBACK THESE REFORMS OR AT LEAST MAKE THEM OPTIONAL BUT DON'T MAKE MSP STATUTORY. Poor India is better than becoming Venezuela.
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These reforms are good and Rakesh himself and BKU were demanding them. However, now the discourse has changed and too much misinformation by the anti-Modi brigade has infiltrated. Modi Govt must now roll back these reforms or at least make them optional. The STATUTORY MSP DEMAND WILL SPELL OUT INDIA's DOOM.
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@KunalKumar-np4ig You are right about the reforms but the misinformation is alarming. I have read articles in leading newspapers from Punjab like the Tribune criticizing these reforms on MSPs which are not even part of these reforms. MSP has no legal stature and giving it one would send the whole farm economics haywire. Lies after lies are being circulated that MSP is a farmer's birthright. MSP is not even a fair price. It is calculated on cost and not Demand/Supply forces. Enforcing and criminalizing purchases below this price would lead to surplus. There is no way Govt can buy all the food grain produced in the country because it would take as much as 60% of all of the Union budget. Even if they buy (by retiring all Govt officers and getting rid of the Army), Govt won't be able to sell at a higher rate in the open market or export because as it is International prices are lower. Govt will have to give export subsidies that means more taxes for the common man who would anyways be under the pinch of inflation. All this you might think would make farmers happy and rich BUT NO EVEN THAT WOULD NOT BE ACHIEVED AS THEY WOULD ALSO FEEL THE PINCH OF INFLATION BUT MORE DANGEROUSLY THEY WOULD FACE DISTRESS SALE AS THERE IS ABSOLUTELY NO WAY GOI WILL BUY ALL THE FOOD GRAINS OR Private players will buy at MSP if they can simply import at cheaper prices. In case private companies are forced, they'll go bankrupt. This is NOT LIKELY TO END WELL. Modi Govt should simply forget about these reforms now or simply leave Punjab and Haryana out of these reforms.
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@krunalpanchal6498 Exactly. Couldn't have put it better myself. Only 6% of purchases happens at MSP. I agree it serves as a reference for purchase but over the years cartels have taken over and effectively replaced the "minimum" in MSP with "maximum" but that is just the tip of the iceberg. Making it statutory will make a purchase below MSP a criminal offense. This will put off buyers esp if the market prices are low and they are forced to shell out more money and they would simply not buy. Think about it, Why would you buy wheat for Rs 20 when you can import it for Rs 10? You ban imports and the agro industry would not be competitive anymore. Farmers esp the small farmers need money immediately after harvest and they also don't have storage mechanisms. Private buyers on the other hand can wait them out because in a surplus as it is demand would be low. Farmers will either have to sell at very low prices or would the option of burning their produce. It is one thing to oppose these reforms for political mileage but what is surprising is that Congress is backing this irrational demand of "statutory" MSP? They were in power for 10 years before Modi and many times before that too. They know damn well why a statutory MSP is bad. Even if they win in 2024 over this are they in any position to implement it? This DANGEROUS and effectively the path to becoming Venezuela. Modi SHOULD SIMPLY ROLL BACK THE REFORMS. FARMERS HAVE CHOSEN POVERTY. GIVE IT TO THEM. IT IS EASIER TO KEEP SIGNING FARM LOAN WAIVER CHEQUES THAN INKING A STATUTORY MSP THAT WILL DESTROY INDIA.
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