The abbreviation MSP which stands for Minimum support prices is defined as an agricultural product price portfolio by the government of India to purchase directly from farmers. The MSP plays a vital role in safeguarding the interests of the farming community when the market prices touch a low
Some major points accentuated about MSP
1- Need of MSP
2- Benefits of MSP
3- How MSP is evaluated
4-Present scenario of MSP
Need Of MSP
The basic need of MSP is it protects farmers from price fluctuations and market imperfections.
This emerged to prevent stress selling which made the farmers gain no profit and incur huge losses. As this crop has a guaranteed price so the farmers can invest properly without any worry about the ever-changing market.
Benefits Of MSP
Minimum support price covers a manifold of cost which shows (A2) to labor (FL). In this process prices of various product were announced before crop cycle, during rabi and Kharif crop season. The government of India guarantees an off-take price to farmers during the harvest.
Some of the pellets benefits are:
@1 It increases farmers’ income.
@2 when they have more disposable income they can invest it in new technology.
@3 It also helps in achieving government goal of financial inclusion.
Evaluation Of MSP
1.5 times MSP formula = 1.5 times the A2+FLcosts.The MSP is fixed twice a year on the recommendations of the Commission for Agricultural Costs and Prices (CACP), which is a statutory body and submits separate reports recommending prices for kharif and rabi seasons.
Present Scenario
MSP increased by Rs. 50 to Rs. 300 per quintal. Food Corporation of India and other State agencies will continue to purchase farm produce at MSP, APMC mandis will also continue to function. … 75 per quintal and Rs 50 per quintal respectively has been announced.
The crops which are registered under MSP are: paddy, wheat, bajra, ragi, maize, pulses, groundnut, mustard, etc.
Through this article, our team aim is to provide essential information to the farmer’s community.
By: Nirad Baran Dalai
