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)&

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.

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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

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.

To the office-goers who think the #FarmersProtest is misguided and that the laws are actually good for them. Imagine this: Imagine that the government, without asking you or anyone, passed laws that made it possible for your employer to pay you as little as ten rupees a month.

Now imagine that when you said this was unfair, they told you this is for your own good because you have also been given the freedom to work anywhere in the world, for any company of your choice. They also tell you that if you want, you can even work for individuals.

Now, I am sure this was really easy for you to imagine if you work over the internet. But in order to really understand this, imagine what would happen if you couldn't. What if you had to go to work physically every day and what if your work involved physical movement of goods.

I think you will be extremely pissed. I think you will not like it at all. You have a life that involves commuting to work. You have your expenses sorted out. It is easier for you to deal with your salaried life than to manage ten thousand work engagements spread out all over.

Now imagine that you told the government you don't like this decision and that you will like things to go back to the way they were. Imagine you are ignored completely. Imagine you gather up your fellow office-goers and march to the seat of power to make your voice heard.