Current Affairs

MINIMUM SUPPORT PRICE (MSP)


MINIMUM SUPPORT PRICE (MSP)

 

After the scrapping of Three farm laws, now farmers started demanding a Guaranteed Minimum Support Price.

 

·       MSP is a price given by the Government to the farmers for the Particular crops to avoid the distress sale and loss.

 

·       It is calculated on the basis of one and half times of the cost of production done by the farmers.

 

·       This price was recommended by the Commission for Agricultural Costs and Prices (CACP), twice a year.

 

·       Now, the govt gives MSP to 23 Crops that have grown in both Kharif and Rabi seasons.

 

PROBLEMS IN MSP

 

1.   The procurement policy of govt which heavily depended on Rice and Wheat for the PDS (Ration shops)

 

2.  Lack of storage facilities in Food Corporation of India (FCI) which stops the FCI from procuring a lot of grains.

 

3.  The amount provided as MSP is just 1.5 times the procurement cost. It doesn’t yield that many profits to the farmers.

 

4.  The Minimum price given by the Govt for Rice and Wheat affects the Diversification of Crops which disrupts the Food security of India.

 

5.  The Middlemen, the improper APMC market systems, and Commission agents affect the profit of the small farmers.



MINIMUM SUPPORT PRICE (MSP)