Arguments FOR MSP- MSP is the price at which public procurement happens.

The public
procurement operations as they exist today commenced in the Green Revolution era with two
main objectives: ensuring food security and extending farmers' price support. The price support
was a policy instrument encouraging farmers to adopt modern production technologies. MSP
was expected to serve as a floor price for the surplus generated. Public procurement is limited to
a few crops and a few regions. The quantity procured is also limited. Though MSP is announced
yearly for 23 crops (including sugarcane), its implementation is effective for only a few crops.
The crops most actively procured are rice, wheat, and, to some extent, pulses and cotton.
Regional distribution of procurement by public agencies is highly skewed. 2019-20, around 80
percent of the rice procured was from seven states, whereas almost all wheat procurement was
from just five states.

Arguments:

1. MSP is crucial for ensuring fair prices for farmers and is determined by the Commission
for Agricultural Costs and Prices (CACP), considering factors like production costs,
market trends, and demand-supply dynamics.
2. Procurement of crops at MSP would be beneficial because farmers will receive
guaranteed income support, especially during market price fluctuations. The price
guarantee will encourage farmers to take up geographically suitable crops for their
agroclimatic zones.
3. If MSPs are withdrawn and prices plummet for the crops, it may adversely impact the
livelihoods of these farmers. Currently, MSP meaningfully applies to only certain crops,
causing farmers to rely heavily on paddy and wheat production. By broadening this to
include all 23 crops to be procured at MSP, farmers may diversify to other crops and
reduce their risk.
4. According to India Today Magazine, several farmer groups have explained that the new
laws do not require prices for sales to private parties to be linked to the MSP — a key
factor governing the mandi structure. Without this protection, farmers with small
landholdings will be vulnerable to price exploitations by corporations or large-scale
purchasers.