MSP, Mandis and the Farm Laws
Who Benefits: Wheat, Rice and a Few States
Government procurement is concentrated in wheat and rice and in states like Punjab, Haryana and Madhya Pradesh, so many farmers see little effect of MSP.
Effective support is narrow.
Concentration
Most public procurement is wheat and rice from a few states.
Share of farmers
Studies estimate that only a minority of farmers, often quoted around six per cent, sell to government at MSP.
Other crops
Pulses, oilseeds and millets get less procurement, so prices often fall below MSP.
Regional gap
Farmers in eastern and southern states often get less benefit.
Below MSP
Farmers in a state with little procurement sell pulses at prices below MSP in local markets.
Assuming announcements equal effective support
Procurement decides.
Key takeaways
- Procurement is concentrated.
- Few farmers benefit directly.
- Pulses and oilseeds get less.
- Regions differ.
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