MSP is decided by?
VerifiedAnswer: Based on the recommendations of the Commission for Agricultural Costs and Prices, the Department of Agriculture and Cooperation, Government of India, declares Minimum Support Prices (MSP) for 22 crops before their sowing seasons.
Explanation:
The decision-making process for MSP involves two key government bodies working together to protect farmers' interests. The Commission for Agricultural Costs and Prices (CACP) serves as the primary advisory body that conducts detailed research and analysis before making recommendations to the government.
CACP is a statutory body established in 1965 that carefully examines various factors while formulating its MSP recommendations. The commission considers production costs, changes in input prices, market price trends, demand and supply conditions, inter-crop price parity, and the overall impact on the economy. They also take into account the cost of cultivation data collected from different states across the country.
After thorough analysis, CACP submits its recommendations to the government. The final authority to declare MSP rests with the Department of Agriculture and Cooperation, which is part of the Ministry of Agriculture and Farmers Welfare, Government of India. This department reviews CACP's recommendations and makes the official announcement of MSP rates.
The timing of MSP announcements is strategically planned to occur before the sowing seasons of respective crops. This advance notice helps farmers make informed decisions about crop selection and investment in agricultural inputs. Currently, MSP is announced for 22 crops, which include:
• 14 Kharif crops: Paddy, Jowar, Bajra, Maize, Ragi, Arhar, Moong, Urad, Cotton, Groundnut, Sunflower, Soybean, Sesamum, and Nigerseed
• 6 Rabi crops: Wheat, Barley, Gram, Masur, Rapeseed & Mustard, and Safflower
• 2 Commercial crops: Sugarcane and Jute
The MSP mechanism serves as a safety net for farmers, ensuring they receive a guaranteed minimum price for their produce even when market prices fall below expected levels. This system encourages agricultural production and helps maintain food security while protecting farmers from market fluctuations and ensuring their economic stability.
