Earlier quoted context omitted.
You keep using MSP, but haven't said what it is.
Sorry, I just copy pasted from another post of mine where we were talking about MSP. MSP means minimum support price. Its a guarantee from the government to the farmers that the government will buy the crop at a certain minimum price no matter the market situation is. For example, MSP for 1 kg rice may be rupees 20. If the farmers can get a higher price in the market, they can sell it at that price. But if the market…
> why can't farmers dictate the price if they have this much bargaining power.
They have political bargaining power, but don't have much bargaining power in the market. This is because most crops are perishable goods. Even with crops like rice (which can be stored by the farmers for an extended period), farmers can't afford to hold on to the goods for long... they need cash to survive.