What is MSP and how does the government decide it? This is also a demand of the farmers marching to Delhi.

Farmers are marching towards Delhi demanding Minimum Support Price (MSP) and many other demands. For this, security has been tightened on all the borders of Delhi and barricades have been installed. Actually, the objective of MSP is to protect farmers from losses due to fluctuations in crop prices. Actually MSP has been implemented on 23 crops.

Farmers associated with many farmer organizations are moving towards Delhi demanding Minimum Support Price i.e. MSP. On February 13, farmers are gathering for their many demands including MSP. In view of this, the borders of Delhi, Punjab and Haryana have been sealed and every vehicle coming and going is being checked.

At the same time, Section 144 has been imposed in entire Delhi and internet services have also been stopped at some places. However, this is not the first time, even before these farmers had agitated for their demands, which was also ended.

What is the Minimum Support Price Rate? (What is MSP Rate?)

Minimum Support Price i.e. MSP is like a guarantee given to the farmers, in which it is decided at what price the farmers’ crops will be sold in the market. Actually, the price of the crops is fixed during the sowing of the crop itself and it is not sold in the markets for less than the fixed price. After the MSP is fixed, even if the prices of crops fall in the market, the government buys crops from the farmers at the fixed price. In simple words, the objective of MSP is to protect farmers from losses amid fluctuations in crop prices.

On which crops MSP is applicable?

The Agriculture Ministry applies MSP on Kharif, Rabi season and other season crops as well as commercial crops. At present MSP has been implemented on 23 crops purchased from farmers of the country. Out of these 23 crops, 7 grains are jowar, millet, paddy, maize, wheat, barley and ragi. There are 5 pulses, moong, pigeon pea, gram, urad and lentils.  In addition, there are 7 oilseeds, soybean, safflower, groundnut, rapeseedmustard, sesame, sunflower, and niger seed and 4 commercial crops, cotton, copra, sugarcane, and raw juteWho decides the MSP of crops? The central government imposes the MSP rate on crops and state governments also have the right to impose MSP. The Central Government had formed the Commission for Agricultural Costs and Prices (CACP) in the year 1965 with the aim of giving fair prices to the crops of the farmers. It decides the MSP for Rabi and Kharif crops every year. The MSP rate was first implemented in 1966-67. On the basis of the recommendations made by CACP, the government announces MSP for 23 crops every year.

How is MSP decided?

Whenever CACP recommends the Minimum Support Price, it decides it keeping certain things in mind. The organization pays attention to these points that what is the cost of the product for the crop, how much has the input prices changed, what is the trend of the current prices in the market, what is the demand and supply situation, what is the international price situation. Apart from this, CACP decides the MSP on crops only after taking stock of the conditions at the location, district and national and international level. However, there is no law regarding MSP in the country. If the government wants, it can give MSP to the farmers or not, then it is their decision.

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