Indian Economy: News and Discussion

Swiftfarts

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Ya'll Nibbiars eyery one has ingored that there is a recommendation for a regulatory agency to monitor the pricing on a similar scale like SEBI. Dont you think that a good idea? Dont you think it will have impact on a fair pricing? Its should be fair price not MSP.
MSP is minimum fair price. MSP is calculated taking cost of production in mind. Even today MSP on many products is below production cost. I don't know why people are opposing MSP? if they genuinely care about farmers. We all are desh bhakts after all.
 

Bhumihar

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Govt invest 0.5% of revenue on average on farmers yet there contribution is over 15% to GDP. Most of the investment is by farmers themselves. Not by govt or pvt players.
Farming isn't profitable in the least bit to many people working in the same sector for it to be profitable. U are talking as if the Gov distributes free money to Businessmen and they don't invest their own hard earned money. No one is supposed to get shit for free get this through your head.
If corporates rake up NPA their company will be sold just like that Farming is business and they will have to face the risk of businesses.
 

Swiftfarts

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I would be happy if I would get more price here a reason.

One of my cousin who is damn rich but owns a farm. He sells his sugar cane to a private player not to a co operative players. And his get higher price 3,500 rupees per tonnes compared to a co operative that is offering 2,400 per tonnes that's almost a 50 percent increase in the price. So due to competition gets a better pricing and here other benifits.

That private factory owns sugar cane harvesters so you get extra tones so the pricing is better and even the tonnage quantity is increased so better benifits and better profits.
That's great , so there should be no problem with fixing MSP at say 2000 Rs at minimum by law than , that's all farmers are asking :)
 

Haldilal

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MSP is minimum fair price. MSP is calculated taking cost of production in mind. Even today MSP on many products is below production cost. I don't know why people are opposing MSP? if they genuinely care about farmers. We all are desh bhakts after all.
But now days the MSP dosent stand up for fair price but Mandi selling prices and agriculture cant be Done as profitable business see the land prices 10 lakha rupees per acre ia damn costly.
 

Haldilal

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Arre Nibba for sugar cane the MSP is 2,800 in maharashtra in 2019 but the sugar cane factory sold at below MSP in Maharashtra.

That private player paid higher prices because of the harvesters you get more sugar and more tonnes when you cut the sugar cane with a harvester.
 

Swiftfarts

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Arre Nibba for sugar cane the MSP is 2,800 in maharashtra in 2019 but the sugar cane factory sold at below MSP in Maharashtra.
i was just giving you an e.g to fix minimum rate.
Why do u want governments to spoon feed u?
If it sells it sells.
If not than find a better thing to do.

Ever heard about market equilibrium
Who is spoon feeding ? We are just asking for MSP rate to be fixed for everyone.
 

Knowitall

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Govt invest 0.5% of revenue on average on farmers yet there contribution is over 15% to GDP. Most of the investment is by farmers themselves. Not by govt or pvt players.

This is complete wrong, you are assuming to many things , yes there are problems in system , and there was and is a need for improvement. But here the issue is totally different. and no i am not exposed on MSP , it's this govt and its supporters who are. govt need to guarantee MSP by law , what's stopping it.
you are simply talking nonsense and lying.

Drawing on the most recent estimates (not always for the same years), annual central government subsidies to farmers would be of the order of Rs. 120,500 crores as the sum of fertilizer subsidies (Rs. 70,000 crores, 2017/18), credit subsidies (Rs. 20,000 crores, 2017/18), crop insurance subsidies (Rs. 6500 crores, 2018/19) and expenditures towards price support (Rs. 24,000 crores estimated for 2016/17).

Annual State government subsidies are almost of an equal amount of Rs. 115,500 crores to as the sum of power subsidies (Rs. 90,000 crores, 2015/16), irrigation subsidies (Rs. 17,500 crores, 2013/14), and crop insurance subsidies (Rs, 6500 crores, 2018/19). In addition, in the year 2017/18, state governments announced loan waives totaling to Rs. 122,000 crores. Overall farm subsidies amount to 2-2.25% of GDP.

India’s subsidies involve price interventions. price interventions create inefficiencies because they embed incentives for fraud, diversion, and waste. Overtime, as price subsidies become deeper and entrenched, these inefficiencies accumulate and may ultimately pose a threat to the sustainability of subsidies itself.

Screenshot 2020-09-20 115640.png


1600583272258.png
 

Bhumihar

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Who is spoon feeding ? We are just asking for MSP rate to be fixed for everyone.
Let the farmers and traders decide that.
Ambani isn't coming here to buy Famers land, it's your average Famer wholesaler and Shop owners that all have stakes.
 

prasadr14

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Let the farmers and traders decide that.
Ambani isn't coming here to buy Famers land, it's your average Famer wholesaler and Shop owners that all have stakes.
best is,
no one is forcing the farmers to NOT sell to mandis and get MSP.
They can still do that if they want to...

not sure what this guy is trying to sell here..
 

Knowitall

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Infact it is the middle class which needs to get tax breaks from the govt.

Tax breaks mean more money at hand which will result in more spending and thus drive the GDP growth forward.
 

Bhumihar

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best is,
no one is forcing the farmers to NOT sell to mandis and get MSP.
They can still do that if they want to...

not sure what this guy is trying to sell here..
His arguments is that Gov is giving unfair advantage to private players by giving tax break outside mandi but he doesn't answer if the tax breaks are permanent.
 

Haldilal

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Here is what a farmer would want :

A better irrigation.

Better infractures.

Better agriculture equipments.
One day I saw a small tractor when inquired I come to knew it had some kind of subsidy.

For sugar cane producers a harvesters is good. You cant afford to pay peoples to cut the sugarcane that damn costly. In Maharashtra we call them toli they charge a high price to cut the sugarcane. So here a group of 20 farmers made a cooperative and purchased a harvester. Now that has become more economical. And they get better tonnage of sugar cane.

We need a better mechanism than a MSP. Now there a need to go beyond a MSP and get a idea for a Fair pricing. A regulatory agency on a scale of SEBi should do and have some mechanisms for it now further details are for you decide.
 
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Swiftfarts

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you are simply talking nonsense and lying.

Drawing on the most recent estimates (not always for the same years), annual central government subsidies to farmers would be of the order of Rs. 120,500 crores as the sum of fertilizer subsidies (Rs. 70,000 crores, 2017/18), credit subsidies (Rs. 20,000 crores, 2017/18), crop insurance subsidies (Rs. 6500 crores, 2018/19) and expenditures towards price support (Rs. 24,000 crores estimated for 2016/17).

Annual State government subsidies are almost of an equal amount of Rs. 115,500 crores to as the sum of power subsidies (Rs. 90,000 crores, 2015/16), irrigation subsidies (Rs. 17,500 crores, 2013/14), and crop insurance subsidies (Rs, 6500 crores, 2018/19). In addition, in the year 2017/18, state governments announced loan waives totaling to Rs. 122,000 crores. Overall farm subsidies amount to 2-2.25% of GDP.

India’s subsidies involve price interventions. price interventions create inefficiencies because they embed incentives for fraud, diversion, and waste. Overtime, as price subsidies become deeper and entrenched, these inefficiencies accumulate and may ultimately pose a threat to the sustainability of subsidies itself.

View attachment 59687

View attachment 59688
Yawn! a sector contributing 17% of GDP getting 2.25% subsidies is no big deal. corporate , industrial sector get much higher subsidies. 60% of what govt spend on agricultue.

0.52759300_1519820685_jitendra--gfx2.jpg


0.75113900_1519820629_jitendra--gfx1.jpg


https://www.downtoearth.org.in/news...e-consistently-favored-over-rural-india-59801
Indian farmers subsidies are below western capitalist countries.

https://www.livemint.com/news/india...ern-countries-official/amp-1553687604807.html
 

Swiftfarts

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Infact it is the middle class which needs to get tax breaks from the govt.

Tax breaks mean more money at hand which will result in more spending and thus drive the GDP growth forward.
Yes middle class need to get tax brake no doubt ,i agree.
 

Knowitall

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Food for thought:-

The govt spends 2 to 2.5% of the GDP on farmers in 2018-19 period.

The govt spend 3% of the GDP on education sector in 2018-19 period.

This should pretty much sum up why we are in such a position.
 

Swiftfarts

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best is,
no one is forcing the farmers to NOT sell to mandis and get MSP.
They can still do that if they want to...

not sure what this guy is trying to sell here..
What happen when mandi close down due to no revenue ? What after that
 

Swiftfarts

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Food for thought:-

The govt spends 2 to 2.5% of the GDP on farmers in 2018-19 period.

The govt spend 3% of the GDP on education sector in 2018-19 period.

This should pretty much sum up why we are in such a position.
:rofl: matlab kuch bhi hain !
 

Knowitall

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Yawn! a sector contributing 17% of GDP getting 2.25% subsidies is no big deal. corporate , industrial sector get much higher subsidies. 60% of what govt spend on agricultue.

View attachment 59691

View attachment 59689

https://www.downtoearth.org.in/news...e-consistently-favored-over-rural-india-59801
Indian farmers subsidies are below western capitalist countries.

https://www.livemint.com/news/india...ern-countries-official/amp-1553687604807.html
Corporate industrial sector is the way forward not agriculture sector.

We are to become a manufacturing hub not a agricultural society.
 

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