From Food inflation to Food inclusion-Devinder Sharma

In Norway, dairy farmers receive just 21.9 per cent of the prevailing supermarket price of milk. Against 25.50 Kroner that consumers shell out for milk in supermarkets, dairy farmers get only 5.62 Kroners. In fact, the chart below presents a very clear picture of what ails agriculture across the globe. Farmers share in the end consumer price is continuously falling and they are in reality being squeezed out of business by the supermarkets.

And yet, the consumers react when farmers demand a Minimum Support Price (MSP) or a floor price below which no trading should take place not realising that such a move will be beneficial for both consumers as well as farmers. They get browbeaten by mainline economists who shout that markets will get distorted if farmers get a higher price. You can see which market gets distorted and whose interests these economists are trying to protect.