Ananya Gupta
August 27, 2023 03:21
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Discover the full form of MSP - Minimum Support Price, a crucial agricultural policy in India that ensures fair compensation for farmers' produce. Learn about its significance, impact, and role in stabilizing agricultural markets.
Minimum Support Price (MSP) is a government-supported agricultural price policy implemented in India to ensure that farmers receive a fair and remunerative price for their crops. The MSP serves as a safety net for farmers by guaranteeing a minimum price at which their produce will be purchased by the government or government agencies. This policy aims to safeguard farmers from market fluctuations and price volatility, ensuring their economic well-being and encouraging agricultural production. MSP is usually announced for various crops before the sowing season to provide farmers with price certainty and improve their income security.
The full form of MSP is “Minimum Support Price”. It is a price set by the government to ensure that farmers receive a guaranteed minimum price for their agricultural produce. The purpose of MSP is to provide price stability and income security to farmers, especially in times of market fluctuations or low prices. The government or its designated agencies commit to purchasing crops from farmers at the MSP, thereby offering a safety net and incentivizing agricultural production. MSP is an essential policy in many countries to support the agricultural sector and ensure food security.
| MSP Full Form | |
|---|---|
| Full Form | Minimum Support Price |
| Established | 1966-67 |
| Ministry | The Ministry of Agriculture |
| Who discovered MSP? | K Jha Committee |
| Father of MSP | Dr Frank W Parker |
The Commission for Agricultural Costs & Prices (CACP) plays a significant role in recommending the Minimum Support Price (MSP) for a range of agricultural crops in India. Here is a list of some major crops for which MSP is typically announced:
It’s important to note that for sugarcane, the Fair and Remunerative Price (FRP) is determined by the Department of Food & Public Distribution.
The MSP for Toria is determined based on the MSP of Rapeseed/Mustard seed, and the MSP for De-Husked coconut is based on the MSP of Copra.
The history of Minimum Support Price (MSP) in India dates back to the early 1960s when the country was facing food shortages and a lack of price stability for agricultural produce. The need to ensure remunerative prices for farmers and encourage increased agricultural production led to the introduction of the MSP policy. Here’s a brief overview of the history of MSP:
The Minimum Support Price (MSP) is a key agricultural policy in India that aims to provide price support and income security to farmers. It has several distinct features that contribute to its role in the agricultural sector. Here are some important features of MSP:
The Minimum Support Price (MSP) holds significant importance in the Indian agricultural sector and has far-reaching impacts on various stakeholders. Here are some key points highlighting the significance of MSP:
While the Minimum Support Price (MSP) policy has several advantages, there are also challenges and issues associated with its implementation. Here are some of the key issues with MSP:
The determination of Minimum Support Price (MSP) involves various factors that influence the pricing decision. The Commission for Agricultural Costs & Prices (CACP) takes these determinants into account when recommending MSPs for different crops. Here are some key determinants of MSP:
The Minimum Support Price (MSP) holds significant importance in the UPSC economics syllabus, especially within the context of India’s agricultural landscape. As a pivotal policy tool, the MSP system employed by the Indian government plays a crucial role in ensuring equitable compensation for farmers’ produce. This topic has garnered substantial attention, sparking debates and dialogues in recent times.
For UPSC aspirants, a comprehensive grasp of the MSP framework is indispensable. This encompasses its historical evolution and contemporary relevance, along with its profound implications on farmers, the agricultural domain, and the broader economy. Adept knowledge of the MSP mechanism serves as a cornerstone for UPSC candidates aiming to excel in the General Studies paper, as well as in the Essay and UPSC Optional Subjects that delve into realms like agriculture, economics, and governance. A nuanced understanding of the MSP regime empowers aspirants to engage thoughtfully with intricate questions and issues posed by the UPSC examination, enabling them to navigate its complexities effectively.
| Related Links | |
|---|---|
| Marginal Standing Facility | National Sample Survey Office |
| APMC | GATT |
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