Regarding the Minimum Support Price (MSP), Goyal explained that it currently guarantees farmers a price that is 50% higher than their actual cost of production, which provides an attractive return on investment.
Agriculture in Punjab is struggling with several structural issues for which guaranteed MSP can t even be a temporary fix let alone a solution. On the contrary, it will keep worsening the situation. The crises that besiege agriculture in Punjab rarely get so much play from farmer unions as MSP. That s short-sightedness.
Sources told Business Today that demand is not feasible as it will cost the Centre an additional Rs 10 lakh crore. They said that the total value of agricultural produce in FY 20 was Rs 40 lakh crore. This included produce from dairy, farming, horticulture, livestock, and MSP crops.