MSP on select crops to cut water-intensive cultivation.

La Excellence IAS Academy

MSP on select crops to cut water-intensive cultivation.

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La Excellence IAS Academy | March 9, 2024 | Economy

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.

Source: Mint

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