MSP can only guarantee stable price not best rate, says NITI Aayog's Chand
The minimum support price (MSP) of crops can guarantee stable prices but not always the best rates, which can only be ensured through fair competition in the market, Niti Aayog member Ramesh Chand said on Friday.
He was addressing an agriculture conclave organised by Rural Voice, a digital media platform.
Speaking on the demand of farmer groups to make MSP a legal right, Chand noted that cultivators want it to get the best price for their produce and also to protect themselves from price fluctuations.
"In my view, MSP is not the best price in all situations. It is definitely a stable price but not the best price. Best price comes from competition. If there is competition in the market, farmers can get the best price," he said.
The government fixes MSP for 22 crops. It procures wheat and paddy for supply through ration shops under various welfare schemes. Some quantities of oilseeds and pulses are also procured.
Chand, who is also a member of the government-appointed committee on M