"Ideally, the MSP should be one that helps farmers, traders and consumers, but now, it has become the maximum support price favouring only traders," Kumar said.
Even government agencies like the Food Corporation of India (FCI) and the State Trading Corporation (STC) are not in a position to export as their procurement cost is higher than the international prices, he said, adding the government had even failed at all options for barter trade with neighbouring nations.
"International prices of rice and wheat rule much below the MSP announced by the government. This situation acts as a major setback to grains exports as it becomes unviable for domestic growers," Kumar said.
Saying that this created huge buffer stocks for the government as traders did not lift the wheat stocks despite various discount offers.
He said the MSP should be reasonable and in tune with the current trend in the market. "IT should not be pro-farmer or pro-trader but our support price backs one particular group," Kumar said.
The minister said the role of MSP is to help manage surplus stocks and help farmers, but now it placed an additional burden on the government and discouraged interested players from undertaking exports.
"Higher MSP also increases price of the foodgrain domestically, making our rice and wheat unviable in the international market, and though we are abundant with excess stocks we cannot export them," the Union minister said.
Currently, the government has a massive stock of around 37 million tonne foodgrain -- about 13 million tonne in excess of the minimum buffer stock needed for food security.
The stock of wheat alone is estimated at around 22 million tonne, against the minimum buffer requirement of 14 million tonne at present," sources said.
The wheat procurement this year was an all-time high of 16.2 million tonne with Punjab being the largest contributor, the sources said, adding consequently every available space in the state was brimming over with foodgrain.
Kumar added that the government had been unable to either export wheat or sell it under the open market sale scheme with the coming procurement season, we have to finalise on alternative avenues for storage.
