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In my commentary yesterday on the substantial revision of minimum support prices (MSPs) of the current kharif crops in these pages (“Unsound Modinomics of MSPs”), I had concluded that remunerative prices are just one means to achieve higher farm incomes, not sufficient, but the Modi government has assumed, wrongly, that higher prices would automatically lead to stable and rising incomes.
Consider a hypothetical case: Due to a prolonged drought, farmers harvest a paltry amount, which even if sold at prevailing market prices, naturally well above the MSPs, will not help them recoup their losses, leave alone earn income of any kind.
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