Legal Guarantee for MSP

FEB 3, 2023

Government fixes Minimum Support Prices (MSP) for 22 mandated agricultural crops and Fair and Remunerative Price (FRP) for sugarcane on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP), after considering the views of State Governments and Central Ministries/Departments concerned and other relevant factors.

To realize the objectives of MSP Policy, Government extends price support for paddy and wheat through the Food Corporation of India (FCI) and State Agencies. Under this policy, whatever food grains are offered by farmers within the stipulated period & conforming to the specifications prescribed by Government are purchased at MSP by the State Government agencies including FCI for Central Pool. Additionally, Oilseeds, pulses and copra of Fair Average Quality (FAQ) are procured from registered farmers under Price Support Scheme under Umbrella Scheme of PM-AASHA, as per its guidelines at MSP in consultation with the concerned State Government as and when market price of these produce fall below the MSP. Cotton and Jute are also procured by Government at MSP through Cotton Corporation of India (CCI) and Jute Corporation of India (JCI), respectively.

Further, Government in its Union Budget for 2018-19 had announced the pre-determined Principle to keep MSP at levels of one-and-half times of the cost of production. Accordingly, Government has increased the MSP for all mandated Kharif, Rabi and other commercial crops with a return of at least 50 per cent over all-India weighted average cost of production from the agricultural year 2018-19 onwards.

Government has adopted several developmental programmes, schemes, reforms and policies for achieving higher incomes for the farmers. There have been several reforms for income enhancement, which are as follow:

(i) Supplementary income transfers under PM-KISAN,

(ii) Crop insurance under Pradhan Mantri Fasal Bima Yojna (PMFBY),

(iii) Better access to irrigation under Pradhan Mantri Krishi Sinchai Yojana (PMKSY),

(iv) Special attention for creation of infrastructure through Agri Infrastructure Fund (AIF) with a size of Rs. 100,000 crore,

(v) Kisan Credit Cards (KCC) offering production loan to even dairy & fishery farmers besides agricultural crops,

(vi) Formation and promotion of 10,000 FPOs,

(vii) National Mission for Sustainable Agriculture (NMSA), which aims to evolve and implement strategies to make Indian agriculture more resilient to the changing climate.

(viii) Adoption of drone technologies in agriculture which has a potential to revolutionize the Indian agriculture.

(ix) Benefits accruing under Bee-Keeping, Rashtriya Gokul Mission, Blue Revolution, Interest Subvention Scheme, agro-forestry, restructured bamboo mission, implementation of new generation watershed guidelines, etc

This information was given by the Union Minister of Agriculture & Farmers Welfare, Shri Narendra Singh Tomar in a written reply in Rajya Sabha today.

Categories: National

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