The Indian government sets the price for 23 commodities twice a year. MSP is fixed on the recommendations of the Commission for Agricultural Costs and Prices
Who decided MSP in India?
How the govt decides on the MSP? In India, there are two major cropping seasons, namely ‘Rabi’ and ‘Kharif’. The government announces the MSP at the start of each cropping season. The MSP is decided after the government exhaustively studies the major points made by the Commission for Agricultural Costs and Prices .
How does the government decide MSP?
The minimum support prices are announced by the Government of India at the beginning of the sowing season for certain crops on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP) .
Who decides on MSP Upsc?
Who decides the Minimum Support Price (MSP)? Ans. Based on the recommendations of the Commission for Agricultural Costs and Prices, the Department of Agriculture and Co-operation, Government of India , declares Minimum Support Prices (MSP) for 22 crops before their sowing seasons.
Who sets MSP state or Centre?
Know all about the crop MSPs. 2. Who Sets MSP | The MSP is set by the central government for select crops, based on recommendations it receives from the Commission for Agricultural Costs and Prices (CACP).
Which crop has highest MSP?
The expected returns to farmers over their cost of production is estimated to be highest in case of Wheat (100%) and rapeseed/mustard (100%), followed by lentil (79%) and gram (74%); barley (60%); safflower (50%).
Is MSP good or bad?
Advantages of MSP
The concept of the Minimum Support Price (MSP) system acts as a security to farmers so that their crops get the amount for their products and helps them sustain their losses, and does not affect them drastically. Helps government control the growth of crops that are low in production.
How MSP is calculated?
1.5 Times MSP Formula = 1.5 times the A2+FL costs
The Government after considering this stated that the Production Cost is one of the main factors to determine the MSP. Also, the CACP considers all the costs in a comprehensive manner. To determine the MSP, the CACP considers both C2 and A2+FL costs.
Is MSP a legal right?
MSP is as legal right is the only solution .” The farmers also feared that with APMC mandis gone, the MSP will be hard to implement, and with it the public distribution system (PDS) will be redundant.
Is MSP legal in India?
While CACP recommends the MSP of 23 crops every year, its recommendations have no legal binding on anyone including the government and mostly wheat and paddy are procured by the government on MSP. Making Minimum Support Price (MSP) a legal right is not a demand that farmers alone have been raising.
Who decides on MSP?
The Indian government sets the price for 23 commodities twice a year. MSP is fixed on the recommendations of the Commission for Agricultural Costs and Prices (CACP) since 2009. MSP stands for “Minimum Support Price”.
Why MSP is needed Upsc?
Why MSP is needed? To safeguard farmers from the market price fluctuations . The prices of farm commodities are dependent on various factors such as good harvest season which leads to fall in prices. ... MSPs would encourage farmers to sow these crops and thereby maintain a healthy supply.
How MSP is calculated in India?
1.5 times MSP Formula = 1.5 times the A2+FL costs
Considering this, the Government in March 2020 stated that the Production Cost is one of the main factors to determine the MSP and the CACP considers all the costs in comprehensive manner. The CACP considers both C2 and A2+FL costs to determine the MSP.
Which state has highest MSP?
- Punjab. 8.5. 141.
- Haryana. 7.4. 109.
- Uttar Pradesh.
Is sugarcane under MSP?
MSP of sugar has been fixed taking into account the components of Fair & Remunerative Price (FRP) of sugarcane and minimum conversion cost of the most efficient mills. Government has revised the MSP of white/refined sugar from Rs. 29/kg to Rs. 31/kg w.e.f. 14.02.
Why do 6 farmers get MSP?
The government decides the MSP only on the recommendation of CCAP. If the bumper yield of a crop falls , its prices fall, then the MSP acts as a fixed assurance price for the farmers. In a way, it is like an insurance policy to protect farmers when prices fall. Currently, 22 crops are being procured under MSP.
