Guaranteed MSP

This refers to ‘Maximum confusion’ (February 19). Enhancing the minimum support price for all specified agricultural produce will be burdensome, particularly when the government is under obligation to extend a free supply of wheat and rice to the 81.35 crore people to eliminate hunger. The present agitation of the farmers, especially the wealthy ones, is unjustified in the sense that the government has already raised the MSP on several occasions.

However, since the majority of cultivators are marginal and small farmers they must be provided with backward and forward linkages to keep the cost of production low as also avoid distress sale of their produce.

VSK Pillai

Changanacherry, Kerala

Private sector capex

This refers to ‘India Inc boosts capex as economic confidence soars’ (February 19). It is interesting to learn that big companies in the private sector are increasing their capital expenditure. With the government already taking the lead in investing in infrastructure projects, the increase in private capital expenditure can do a world of good to the economic growth of the nation.

The government must ensure that there is adequate supply of essential goods and services at any given time to keep the inflation under control.

S Ramakrishnasayee


Revenue share

The article ‘Are States justified in opposing the revenue-sharing model’ (February 19), raises concerns about the current structure of the revenue-sharing model. The model appears to disadvantage States with higher tax recovery rates by assigning the lowest weightage (2.5 per cent) to them. This inadvertently incentivises States with lower tax income.

This inherent anomaly has a detrimental effect on States with more effective tax recovery mechanisms. Another issue is the substantial weightage (45 per cent) given to ‘income distance’, which represents the difference between the average per capita income of a State and the national average.

This disproportionately affects States with the highest per capita income, as those with the smallest income gap receive the maximum weightage. In essence, the current model penalises States that demonstrate better fiscal prudence.

Srinivasan Velamur


Incentivise farmers first

Apropos ‘Agriculture: Subsidise, but tax the rich’ (February 19). Before taxing the rich, a database of farmers and their crops must be prepared, and this must be updated regularly. Secondly, farmers’ production efforts must be backed by scientific advice.

Thirdly, subsidise farmers based on ground realities. Through these exercises, identifying the rich farmers becomes easy.

Rajiv Magal

Halekere Village, Karnataka


In the news brief on State of the Economy podcast with Rishi Agrawal, CEO and co-founder of Teamlease RegTech, Paytm has been inadvertently mentioned instead of Paytm Payments Bank. The error is regretted.