The Commission for Agricultural Costs & Prices (CACP
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”.
Who determine 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 .
What is MSP and how is it determined?
The answer to the question is that the MSP is fixed by the Central Government of the 23 agricultural crops . It is based on the recommendations of the Commission for Agricultural Costs and Prices (CCP) and is also responsible for fixing the FRP (Fair and Remunerative Price) of sugarcane.
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.
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.
Can state govt decide MSP?
“It is a policy matter. There is no draft of regional MSP and so, for the entire country, there is one MSP. The state government can give a bonus on any crop by looking at the cost that is incurred — it is its own decision.
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.
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.
What is the difference between MSP and procurement price?
It is the price at which govt purchases the crop after harvesting, the main difference between Procurement Price and MSP is that MSP is declared before sowing while PP is declared after harvesting .
Who started MSP?
3. How did MSP come into existence | India Today.in has earlier reported on the history of MSP in India. In short, the MSP-based procurement by the government has its origin in the rationing system introduced by the British during World War II . A department of food came up in 1942.
What is C2 50%?
Noted agricultural scientist Monkombu Sambasivan Swaminathan, who played a leading role in India’s Green Revolution, has said the NDA government should fix minimum support prices (MSPs) for farm produce based on a comprehensive measure of cultivation costs that includes the imputed cost of capital and the rent on the ...
Why MSP Cannot be made a legal right?
A constitutional right under Article 21
It needs no proof that it has become extremely difficult for farmers to earn their livelihood . Thus, forcing the farmer to sell below MSP leads to denial of their ‘right to livelihood’ guaranteed under Article 21 of the Constitution.
What are the disadvantages of MSP?
- Stagnant rates of MSP: The Minimum Support Price, though announced every year, does not increase in proportion to the increase in cost of production.
- Lack of awareness: A lot of illiterate farmers who do not have adequate knowledge about the Minimum Support Price end up being exploited by middlemen.
Why is government not making MSP a law?
“In the international market, the price of our produce is higher than many countries. If MSP is made mandatory, the government will not be able to stop traders from imports . It will then have to buy all crops from farmers.
Do farmers actually get MSP?
The Modi government declares a minimum support price (MSP) for 23 crops every year. So, in principle, the government of India does recognise that the farmers need and deserve a minimum price for their produce. ... For most farmers, this minimum support price remains a maximum securable price, almost a dream price.
