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www.iaritoppers.in Whatsapp : +91-9694095242 Page | 1 Minimum Support Prices (MSP)  MSP is a price fixed by Government of India to protect the producer - farmers - against excessive fall in price during bumper production years. The minimum support prices are a guarantee price for their produce from the Government.  Government announces (declares) Minimum Support Prices (MSPs) for 22 mandated crops and fair and remunerative price (FRP) for sugarcane on the basis of recommendations of the Commission for Agricultural Costs & Prices (CACP) before the sowing period each year. (Asked in Bank of Maharashtra AFO – 2021)  As of now, CACP recommends MSPs of 23 commodities, which comprise 7 cereals (paddy, wheat, maize, sorghum, pearl millet, barley and ragi), 5 pulses (gram, tur, moong, urad, lentil), 7 oilseeds (groundnut, rapeseed-mustard, soyabean, seasmum, sunflower, safflower, nigerseed), and 4 commercial crops (copra, sugarcane, cotton and raw jute).  First Time Declared – 1965  Time of Declaration – Beginning of the sowing season (for certain crops)  To restore ground water level, Government has taken several steps, which among others, include (i) Crop Diversification Programme (CDP) in original green revolution states viz. Punjab, Haryana and Western Uttar Pradesh as a sub scheme of Rashtriya Krishi Vikas Yojana (RKVY) since 2013-14 to divert the area of water guzzling paddy crop to alternate crops like pulses, oilseeds, coarse/nutri-cereals, cotton and agro forestry. Presently, the programme is being implemented in the districts having more than 50,000 hectare paddy area.  Pricing policy for sugarcane is known as FRP (Fair and remunerative price).  MSPs are decided on their production cost plus the imputed value of family labour at prevailing wage rate (A2+FL). While the recommendation given by CACP is C2 Method.  In addition, MSP for Toria and de-husked coconut is also fixed on the basis of MSPs of Rapeseed/Mustard and copra respectively.  Kerala introduced MSP for fruits & vegetables. (Total commodities: 16) Current Affairs Part-3
www.iaritoppers.in Whatsapp : +91-9694095242 Page | 2 Commodity Variety Crop : 2022-23 (Rs. Per quintal) Crop : 2023-24 (Rs. Per quintal) Increase in MSP 2023-24 over 2022-23 Kharif Crops Paddy Common 2040 2183 143 Grade 'A' 2060 2203 143 Jowar Hybrid 2970 3180 210 Maldandi 2990 3225 235 Bajra 2350 2500 150 Maize 1962 2090 128 Ragi 3578 3846 268 Arhar (Tur) 6600 7000 400 Moong 7755 8558 803 Urad 6600 6950 350 Cotton Medium Staple* 6080 6620 540 Long Staple ** 6380 7020 640 Groundnut 5850 6377 527 Sunflower seed 6400 6760 360 Soybean Yellow 4300 4600 300 Sesamum - 7830 8635 805
www.iaritoppers.in Whatsapp : +91-9694095242 Page | 3 Nigerseed - 7287 7734 447 Rabi Crops Wheat 2125 2275 150 Barley 1735 1850 115 Gram 5335 5440 105 Masur (Lentil) 6000 6425 425 Rapeseed & Mustard 5450 5650 200 Safflower 5650 5800 150 Other Crops Copra Milling 10590 (2022) 10860 (2023) 270 Ball 11000 (2022) 11750 (2023) 750 De-husked coconut 2860 2930 70 Raw Jute 4750 5050 300 Sugarcane $ Rs. 305 (Basic recovery level: 10.25%) Rs. 315 (Basic recovery level: 10.25%) 10 * Staple length (mm) of 24.5 -25.5 and Micronaire value of 4.3 -5.1 ** Staple length (mm) of 29.5 -30.5 and Micronaire value of 3.5 -4.3 $ Fair and remunerative price  Return to farmers over their cost of production is estimated to be at least 50%.
www.iaritoppers.in Whatsapp : +91-9694095242 Page | 4 Determinants of MSP: 1) Demand and supply; 2) Cost of production; 3) Price trends in the market, both domestic and international; 4) Inter-crop price parity; 5) Terms of trade between agriculture and non-agriculture; 6) A minimum of 50 percent as the margin over cost of production; and 7) Likely implications of MSP on consumers of that product. Sugarcane pricing policy:  With the amendment of the Sugarcane (Control) Order, 1966 on 22.10.2009, the concept of Statutory Minimum Price (SMP) of sugarcane was replaced with the ‘Fair and Remunerative Price (FRP)’ of sugarcane for 2009-10 and subsequent sugar seasons.  The cane price announced by the Central Government is decided on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP) in consultation with the State Governments and after taking feedback from associations of sugar industry.