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The MSP imbroglio

Traders can't be coerced to buy grains at govt mandated prices

Nafed,Cabinet Committee on Economic Affairs ,CCEA, commodities, pulses prices, oilseed pricem, state government, small farmers agri business consortium, SFAC, Price support scheme, PSS, government of india, minimum support price, MSP, framers distres
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A farmer works in wheat field on the outskirts of Ahmedabad (Photo: Reuters)

Business Standard Editorial Comment
The Maharashtra government’s belated denial of any proposal to penalise traders for not buying agri-commodities at the minimum support prices (MSPs) may manage to stem the mayhem in farm markets caused by rumours to this effect, but it has turned the trading community wary of the government’s intentions. Several key agricultural mandis in the state have either remained shut or transacted little business in the past few days to the detriment of the farmers. As conceded by a senior state official, providing MSPs to the farmers is the commitment of the government and not of the traders. The traders cannot

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