Minimum Support Price(MSP) UPSC NOTE

 Why in News

Cabinet Committee on Economic Affairs has increased MSP for Rabi crops. 

Minimum Support Price

• MSP is a price at which the government announces to purchase the produce from the farmers. 

• This is done to protect the farmers from distress sales. 

• Also to ensure that they get a fair price for their produce. 

• The MSP is announced by the government of India twice a year for 24 commodities.

The MSP is calculated based on the recommendations of the Commission for Agricultural Costs and Prices (CACP). 

The CACP takes into account various factors such as the cost of production, market prices, and the need to ensure a fair return to farmers.

There are some concerns about the MSP

1. MSP can lead to overproduction of certain crops.

2. This leads to distort the market.

3. The impact of MSP on farmers has been mixed. 

4. The MSP has not been able to keep pace with the rising cost of production.

Overall, the MSP is a complex policy with both positive and negative impacts on farmers. 

Cabinet Committee on Economic Affairs(CCEA)

• CCEA is a Committee of the Government of India.

• Its responsible for taking decisions on matters relating to the economic policy of the country. 

• The CCEA is chaired by the Prime Minister of India and consists of the following members: 

1. Minister of Defence
   Minister of HomeAffairs
   Minister of Finance
   Minister of Agriculture
   Minister of Commerce and Industry

The CCEA is responsible for taking decisions on a wide range of economic matters, 

1. Price of essential commodities.

2. Foreign Investment.

3. Public sector Undertaking.

4. Infrastructure development.

5. Taxation 

6. Banking and Finance.

Rabi crops 

• Sown in winter (October to March) 

• Harvested in spring (March to May). 

• They require cool temperatures and less water. Some examples of rabi crops are: Wheat , Barley , Mustard, Gram, Peas, linseed.

Kharif crops 

• Sown in monsoon (June to September)  

• Harvested in autumn (October to December). 

• They require warm temperatures and plenty of water. 

• Some examples of kharif crops are: Rice, Mazie, Jowar, Bajra, Cottan, Groundnut, Soybean, 

Zaid crops 

Sown in summer (March to June) 

Harvested in early monsoon (June to July). 

They are short-duration crops that can tolerate high temperatures. 

Some examples of zaid crops are: Waterlemon, Musk lemon, Bittergrad, Pumpkin,Cucumber