Views about Indian agriculture are polarised. On one extreme are a bunch of farmers’ organisations demanding that the government bring in a law to offer guaranteed minimum support prices (MSP) for all crops in the country. We have previously discussed in detail why such a view is flawed. But there also exists another extreme viewpoint. The crux of this view is that government interventions, mostly with an eye to keep food prices from going up, are the biggest reason for the predicament of the Indian farmers. The best way to guarantee the well-being of Indian farmers, these commentators argue, is for the state to discontinue all interventions in the food market. Will such a policy really work wonders for farm incomes? A look at relevant statistics does not support such blanket arguments.
