Explained: What is MSP and why are farmers protesting

  THEY ARE PROTESTING AGAINST THE DEMAND FROM GOVERMENT ON MSP FOR   CROP PROTESTING. 


* WHY FARMERS ARE PROTESTING?

After the announcement of the interim budget, the farmers have been triggered and are protesting against the government with their demands for a guaranteed MSP(The cost at which the government purchases crops from farmers) and for waivers of debts. 

  • They want the MSP to be fixed at 50% higher than the cost of production of any crop.
  • Compensation for the farmers who died during the 2020-2021 protests.
  • Waiver of debts. 

To push the government to address their issue, thousands of farmers are marching in tractors and trucks towards Delhi to get the government to meet their demands. 

On Tuesday, 12th February, Delhi police fired tear gas to prevent the farmers from entering Delhi, which is currently a fortress, reviving the memories of the protest that took place two years ago and lasted for 16 months. 





* WHAT IS MSP?

 The MSP is a minimum price guarantee that acts as a safety net or insurance for farmers when they sell particular crops. These crops are procured by government agencies at a promised price to farmers and the MSP cannot be altered in any given situation. The concept of MSP, therefore, protects the farmers in the country in situations where crop prices fall drastically. Wheat and rice are among the top crops that are procured by the government at MSP from the country’s farmers.

*POLICIES ND PRUDENCE AGAINST PROTEST?

● Minimum support prices (MSPs) of 23 crops should receive a statutory legal backing.
● MSP to be fixed at 50% above the comprehensive cost of production. This includes actual cost incurred to grow crops and assumed values for other items such as family labour.
● Loan waivers and pensions.
● The grab bag of demands also spans trade policy, such as pulling out of WTO.
These demands are better understood by making sense of the underlying causes. Therefore, to get a clearer picture, this agitation needs to be seen through the political economy of Punjab as it encapsulates the core issues



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