MSP or Minimum Support Price refers to the price set by Government of India on agricultural products. The price is set keeping in mind that the farmers earn atleast the minimum profit of that product and incur the cost of the harvest. This is not enforceable by the law. As mentioned above, this is to ensure that the farmers doesn’t get cheated and are ensured to the least selling price for his commodity.
Generally, it is updated in the month of June every year and so it did this year too.
Minimum Support Price (MSP) is fixed on the recommendation of the “Commission for Agricultural Costs and Prices” since the year 2009.
How are MSPs calculated?
Minimum Support Price is fixed by Commission for Agricultural Costs and Prices (CACP). This is calculated by keeping in mind the various factors responsible for it such as:
• Cost of production
• Demand
• Supply
• Fluctuations in domestic market prices
• International market prices
• Agricultural wage rate
Which are the commodities that are covered under MSP?
CACP recommends MSPs of 23 commodities, which comprises of seven cereals, five pulses, seven oilseeds and four commercial crops, namely:
Cereals:
• Paddy
• Wheat
• Maize
• Sorghum
• Pearl millet
• Barley and
• Ragi
Pulses:
• Gram
• Tur
• Moong
• Urad
• Lentil
Oilseeds:
• Groundnut
• Rapeseed-mustard
• Soyabean
• Sesamum
• Sunflower
• Safflower and
• Nigerseed
Commercial Crops:
•Copra
• Sugarcane
• Cotton and
• Raw jute
Year 2021-22‘s MSP:
After the government announced the fresh rates of MSPs this year in the month of June, we noticed there were rise in 22 kharif crop’s MSPs.
On one hand, Sesamum saw the highest rise(per quintal) of about ₹452, while on the other hand, Maize experienced the lowest (per quintal) of just ₹20 this year.
These are few of the crops that saw a rise this year. Namely, Bajra (₹2250), Maize (₹1870), Ragi (₹3377), Tur/Arhar (₹6300), Moong (₹7275), Urad (₹6300), Sesamum (₹7307).
Few are satisfied with the rise in MSPs of these commodities and few says that this isn’t it. Moreover, this is a good news for the farmers across the country and let’s see what else could it offer the next year.
You can comment your views on this and let us know what you feel about this.
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