Syllabus: GS-III Subject: Economy Topic: Agriculture and allied, Issue: MSP
Context: Proposal of guaranteed procurement of unlimited amounts of three pulse crops – masur, tur (pigeon pea) and urad, maize, and cotton at MSP for five years.
Take Away Notes:
- Part of a crop diversification plan.
- Aim: To encourage farmers to move away from harmful practices used for traditional crops that damage soil health.
- Will apply only to those farmers who transition from traditional crops (rice, wheat) to pulses and maize.
- Farmers already cultivating these crops will not be eligible.
Related Concepts:
| Open-ended Procurement Policy: Refers to a system where a government agrees to purchase any quantity of a specific good or service offered by sellers.
● India currently follows this for procurement of rice and wheat. |
Minimum Support Price (MSP):
- It is a government-backed price, a safety net for farmers, guaranteeing them a minimum income for their crops.
- Announced at the beginning of the sowing season on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP).
- Major objectives:
- To support the farmers from distress sales and
- To procure food grains for public distribution.
- Government announces minimum support prices (MSPs) for 22 mandated crops and fair and remunerative price (FRP) for sugarcane.
