The Economics Behind India's Farmers Protest – The Diplomat
Thousands of farmers are protesting again for guaranteed minimum support prices for their crops, an issue that remains sticky.
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Thousands of farmers are protesting again for guaranteed minimum support prices for their crops, an issue that remains sticky.
Although the BJP government is comfortably placed to win a third term in upcoming general elections, it will not want to lose the support of farmers, a powerful voting bloc.
The farmers are demanding minimum support prices for their crops in a repeat of protests in 2021.
India is being targeted using a deeply flawed methodology that the WTO has prescribed for estimating subsidies arising from market price support.
The solution we propose is a storage-linked price deficiency payment mechanism that compensates producers for the difference between notified MSP and the actual realised price.