Ever wondered how MSP for crops is calculated ?

Below is an attempt to present a simplified view, followed by some pertinent questions (just to have better understanding, not taking sides)&

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Farm Acts, Let’s Spread Reality

1. The Farmers Produce Trade and Commerce (Promotion and Facilitation) Bill

Allow farmers to sell their produce outside d Agricultural Produce Market Committee (APMC)

@TajinderBagga @KapilMishra_IND @MODIfiedVikas

#HonestFarmersWithPmModi

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APMCs r Govt Controlled Mandis. So farmers clearly hv more choice who dey wanna sell NOW

APMC is an obsolete institution has now become farmers oppressor, a monopoly cartel fixing low prices for d farmers' produce, forcing distress sales, 1st good Pt

#HonestFarmersWithPmModi

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2. The Farmers (Empowerment & Protection) Agreement on Price Assurance & Farm Services Bill

Dis Bill makes provisions for d setting up of a framework for contract farming

Farmer & an ordained buyer can strike a deal EVEN before d production happens

#HonestFarmersWithPmModi

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3. The Essential Commodities (Amendment) Bill 2020

The FPTC (Promotion & Facilitation) Ordinance allows intra-state & inter-state trade of farmers produce beyond d physical premises of APMC markets

State Govts can’t levy any market Fee/Cess outside APMC areas

3rd good Point

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Benefits

1 Can avoid APMC/Middleman & sell d produce anywhere to anyone

2 Bypass d Essential Commodities Act & be free to store inventory

3 Free to make contracts & transfer risk to Businessmen in deals made over a crop EVEN before yield is made

#HonestFarmersWithPmModi

Long Thread on Farmers protests & Agri reforms: What is the protest all about? Who gets impacted & how? Why are protests concentrated in Punjab & Haryana? Are these really farmers or traders losing grip on monopoly? Are farmers being misled? Let numbers do the talking. Here we go

A top-down view of Indian production is in order here. What does India’s agriculture produce in a year? I like the below chart for FY 2015. Now to understand the complexity, we’ll have to work with one crop & dig details. Let’s work with Wheat.

In 2020, India is looking at 105 million tons of Wheat produce vs 94 mn tons in 2015. What does the growth look like? See below the YoY growth of wheat in India. A 105 mn tons in 2020 will bust the chart below. Forget nay-sayers,Indian agriculture is doing great production.

Something is working well when production goes up consistently. However,while supply is great, demand is not growing as much. Look at the wheat consumption in India. As you see, the demand is consistently below supply by ~ 10 mn tons. Who needs this extra 10% wheat? Not Indians.

Can we export? Unlikely! This is where it gets complicated. Let’s see the United States Dept of Agriculture report on agriculture.The European Union, China, and India accounted for a little over 50 percent of the world’s wheat production (762 mn tons) in 2018/19.

Agricultural Acts - twisted facts Vs facts.

1. farmer can not sell his bag of rice in Assam from AP since it is one national market hence the act is not useful is twisting of fact.

Fact is with market yard check posts gone there will be freedom of movement of goods .

With freedom to buy outside market yards and within market yards competition will be more benefitting the farmer with a better price .market yards also improve their performance since there is competition . #FarmersAct2020
#DelhiFarmersProtest

Agricultural laws - apprehensions -truth

2. Apprehension .
The present government market yards will be forced to shut down due to the new act .
Truth
This is not correct . Government market yards have Freeland given by government , corpus from market fee .

Nominated market committee chairmen who till now are milking the market yards for personal benefit now be responsible and responsive to farmers since alternative of selling out side market yard is available . #AgriculturalLaw #DelhiFarmersProtest

#Agriculturallaws - Apprehensions - Truth

3.Apprehension
Ambanis and Adanis will set up private markets . Agricultural commodities will go into corporate hands

Truth
Private capital comes only when there are profits . Market yards do not seem to be very profitable.

#FarmersAgitation #FarmerPolitics #FarmersProtestHijacked Learn the truth.
Arhtiyas (commission agents) who have been the main link between farmers and procurement agencies in the two states of Punjab and Haryana, launched their campaign against the Centre’s agri-marketing

ordinances early as the three bills cleared by Parliament will adversely affect their business. There are over 30,000 registered Arhtiyas in Punjab and Haryana who are deeply entrenched in the system. They exercise a strong influence on agricultural activities and the politics of

both states. These 30,000 employ another 300,000 sub agents or sidekicks or people who would not have made it into doing anything anyplace were it not for the patronage network of these 30,000. But there are only 1500 farming villages in Punjab. 330,000 / 1500 is about 220 people

on average per village doing the work of middlemen.
Why is this the case?
We had a food shortage and a ship to mouth existence until the 1970’s. Norman Borlaug pioneered a variety of wheat which gave 10 X the yield but needed 3X the fertiliser. The Punjab was chosen as the

battleground against hunger. Enterprising Sikh farmers worked hard to Create what we know as the green revolution. Since there were huge shortages laws were made which didn’t allow for stockholding or selling at farm gates. Essential Commodities Act - APMC Act (farmers were

1. Political: UCC likely to see huge protests from non-majority communities, perhaps equal to or more intense than land reforms and agri reforms protests.

2. If Govt stands firm - different matter. If not, yet another capitulation and significant loss of political currency.

3. Also with the likely fallout and necessary dealing with it, certain that no currency will remain to push any further agenda related to pro-Hindu constitutional changes - likely even in 2024+

4. Electoral: Likely massive favour amongst Hindus because somehow UCC is thought of as being good for Hindus.

5. Absolute polarization of non-Hindus guaranteed.