MSP For Kharif Season Hiked – Free PDF Download

Table of Contents

Question

Consider the following statements with reference to Minimum support price (MSP):

Which of the above statement/s is/are correct?
Select the correct answer from the code given below:

MSP (Minimum support price) is a minimum price guarantee that acts as a safety net or insurance for farmers when they sell particular crops.
These crops are procured by government agencies at a promised price to farmers.
The concept of MSP, therefore, protects the farmers in the country in situations where crop prices fall drastically.

Centre currently fixes MSPs for 23 farm commodities
- 7 cereals (paddy, wheat, maize, bajra, jowar, ragi and barley)
- 5 pulses (chana, arhar/tur, urad, moong and masur)
- 7 oilseeds (rapeseed-mustard, groundnut, soyabean, sunflower, sesamum, safflower and Niger seed)
- 4 commercial crops (cotton, sugarcane, copra and raw jute) based on the CACP’s recommendations.

Commission for agricultural costs & prices (CACP) is not a statutory body. It is just “an attached office of the Ministry of Agriculture and Farmers Welfare.
It simply recommends MSPs, but the final decision and enforcement rests with the central government.
- Note 1: The government can procure at the MSPs if it wants to or it may not. There is no legal compulsion. Nor can it force others like private traders, organised retailers or exporters to pay MSP.
- Note 2: The only crop where FRP payment has some statutory element is sugarcane. This is due to its pricing being governed by the Sugarcane (Control) Order, 1966 issued under the Essential Commodities Act.

There has been increase in MSP for all 14 Kharif crops announced.
Paddy is the main Kharif crop, the sowing of which has already begun. The MSP of the common grade variety of paddy has been increased to Rs 2,040 per quintal for the 2022-23 crop year from Rs 1,940 in the previous year.
The absolute increase in the MSP is much higher for oilseeds and pulses that are grown in the Kharif season as compared to cereals which is understandable due to inflationary pressures.
Overall, the MSP rise comes in the backdrop of spiralling input rates, especially due to sharp increase in fertilizer rates.
Note: The main item apart from Oilseeds & Pulses is Wheat which is causing trouble on the inflation front, but Wheat is a Rabi crop so very less we can do.