Question
Download Solution PDFMinimum Support Prices are decided by:
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFThe correct answer is Cabinet Committee on Economic Affairs.
Key Points
- The Cabinet Committee on Economic Affairs (CCEA) is responsible for approving the Minimum Support Prices (MSP) for various crops in India.
- MSP is a form of market intervention by the government to ensure agricultural producers are protected against any sharp fall in farm prices.
- The CCEA takes decisions based on the recommendations of the Commission for Agricultural Costs and Prices (CACP).
- MSP is announced for 22 mandated crops and an additional bonus for some crops in certain cases.
- The primary objective of MSP is to ensure a remunerative price to farmers and encourage them to adopt modern farming practices.
Additional Information
- Commission for Agricultural Costs and Prices (CACP):
- CACP is an attached office of the Ministry of Agriculture and Farmers' Welfare.
- It recommends MSPs for crops based on factors like cost of production, demand-supply balance, and market price trends.
- Factors Considered for MSP:
- Cost of cultivation, including inputs like seeds, fertilizers, and labor.
- Trends in domestic and international market prices.
- Parity between crops and ensuring fair returns to farmers.
- Mandated Crops under MSP:
- Includes cereals (wheat, rice, maize, etc.), pulses (tur, moong, urad), oilseeds (soybean, mustard, groundnut), and commercial crops (cotton, sugarcane).
- Role of MSP in Agriculture:
- Encourages farmers to grow particular crops to meet food security needs.
- Acts as a safety net for farmers during market price fluctuations.
- Helps stabilize the rural economy and reduce farmer distress.
Last updated on Jul 15, 2025
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