PM Modi Says MSP Will Stay But It Is Limited To Only Three States

Prime Minister Narendra Modi on Monday in a reply to the Motion of Thanks on President Ram Nath Kovind's address in Rajya Sabha, assured the protesting farmers that the Minimum Support Price (MSP) would remain in place, requesting them to end their months-long agitation against the Centre’s farm laws. Alongside repeal of the three farm laws, assurance on MSP has been one of the major demands by the farmers and unions protesting at the Delhi borders.

PM Modi reiterating the Central Government’s stand on MSP, said: “MSP was there, MSP is there, MSP will continue. Affordable ration for the poor will continue. Mandis will be modernised.” Note MSP is the assured price at which foodgrains are procured from farmers by the central and state governments and their agencies, for the central pool of foodgrains.

PM reitertes in Rajya Sabha 'MSP tha, MSP hai aur MSP rahega.'

He is replying in the House to the Motion of Thanks on the President’s Address. pic.twitter.com/CsqDxJHBxO

— ANI (@ANI) February 8, 2021

However, this is in contrast to the state of public procurement of foodgrains and the provision of MSP in the country. The MSP of a crop is common throughout the country and 23 crops are currently being procured under it. 

Public procurement is largely limited to a few food grains such as paddy (rice), wheat, and, to a limited extent, pulses. Since rice and wheat are the primary foodgrains distributed under the Public Distribution System (PDS) and stored for food security, their procurement level is considerably high.

Also, the procurement of foodgrains is largely concentrated in a few states. Three states (Madhya Pradesh, Punjab and Haryana) producing 46% of the wheat in the country account for 85% of its procurement.

For rice, six states (Punjab, Telangana, Andhra Pradesh, Chhattisgarh, Odisha and Haryana) with 40% of the production have 74% share in procurement