"Cabinet Approves Rabi Crop MSP for 2027-28 Season"
Minimum Support Price (MSP)
government-announced floor price for select crops to prevent distress sales after harvest.
CACP (Commission for Agricultural Costs and Prices)
expert body that recommends MSP levels to the government each season.
India's farm price support system is built around the Minimum Support Price (MSP), a floor price the government announces to prevent distress sales when market prices fall after harvest. The Commission for Agricultural Costs and Prices (CACP), an attached office under the Department of Agriculture and Farmers Welfare, recommends MSP levels twice a year: once before Kharif sowing and once before Rabi sowing. The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister, gives final approval. This structure took shape during the Green Revolution era, when assured prices for wheat and rice pushed farmers toward high-yielding varieties and helped build national food security.
MSP is announced for a total of 22 to 23 crops depending on the classification used. These include 14 Kharif crops, 6 Rabi crops (wheat, barley, gram, masur/lentil, rapeseed and mustard, and safflower), and two other crops (copra and jute). Sugarcane is handled separately through a Fair and Remunerative Price (FRP) under a distinct control order. Procurement backing has always been uneven. The Food Corporation of India (FCI) runs a near-open-ended procurement system for wheat and rice to stock the Public Distribution System (PDS). For pulses and oilseeds, purchase happens mainly when open-market prices fall below MSP, carried out under PM-AASHA (Pradhan Mantri Annadata Aay Sanrakshan Abhiyan) through NAFED and NCCF as central nodal agencies.
Since the Union Budget 2018-19, government policy has committed to fixing MSP at a minimum of 1.5 times the all-India weighted average cost of production. The cost benchmark used is A2+FL, meaning paid-out input expenses plus the imputed value of family labour. This is narrower than the C2 cost, which also includes rent and interest on owned land and capital. The National Commission on Farmers had recommended a C2+50% formula, a higher benchmark that farmer groups continue to demand.
CACP computes cost of production using three distinct concepts. A2 covers actual paid-out costs on inputs such as seeds, fertilisers, irrigation, and hired labour. A2+FL adds the imputed value of unpaid family labour to A2. C2 is the most comprehensive: it adds rent for owned land and interest on owned capital to A2+FL. The government's 1.5x commitment is measured against A2+FL, not C2, which means the effective return to farmers is lower than what the headline ratio suggests when land and capital costs are factored in.
An announced MSP is not the same as a guaranteed purchase. For wheat and rice, FCI operates a dense buying network that converts the MSP into real farmer income with reasonable reliability. …
Consider the following :
1.Areca nut
2.Barley
3.Coffee
4.Finger millet
5.Groundnut
6.Sesamum
7.Turmeric
The Cabinet Committee on Economic Affairs has announced the Minimum Support Price for which of the above ?
Consider the following statements:
1.In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India.
2.In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise.
Which of the statements given above is/are correct?
Consider the following statements:
1.The Government of India provides Minimum Support Price for niger (Guizotia abyssinica) seeds.
2.Niger is cultivated as a Kharif crop.
3.Some tribal people in India use niger seed oil for cooking.
How many of the above statements are correct?
Which of the following factors/policies were affecting the price of rice in India in the recent past?
1.Minimum Support Price
2.Government's trading
3.Government's stockpiling
4.Consumer subsidies
Select the correct answer using the code given below:
What do you mean by Minimum Support Price (MSP)? How will MSP rescue the farmers from the low income trap?
How do subsidies affect the cropping pattern, crop diversity and economy of farmers? What is the significance of crop insurance, minimum support price and food processing for small and marginal farmers?
Match List-I (Crop) with List-II (MSP Category) and select the correct answer using the code given below:
List-I
A.Barley
B.Lentil (Masur)
C.Safflower
D.Raw Jute
List-II
1.Oilseed
2.Fibre/Commercial crop
3.Cereal
4.Pulse
With reference to the fixing of Minimum Support Price (MSP) in India, consider the following statements:
1.The Union Budget 2018-19 committed to fixing MSP at least 1.5 times the all-India weighted average cost of production.
2.The cost of production used for this 1.5x calculation is the comprehensive C2 cost, which includes imputed rent and interest on owned land and capital.
Which of the statements given above is/are correct?
With reference to procurement of agricultural produce at MSP in India, consider the following statements:
1.The Food Corporation of India procures wheat and rice on a largely open-ended basis for the Public Distribution System.
2.NAFED and NCCF procure pulses and oilseeds at MSP under the PM-AASHA scheme when market prices fall below MSP.
Which of the statements given above is/are correct?
Consider the following statements regarding MSP fixation in India:
1.The Commission for Agricultural Costs and Prices (CACP) recommends MSP for notified crops.
2.The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister, gives final approval to MSP.
Which of the statements given above is/are correct?
How many Rabi crops are currently mandated for Minimum Support Price (MSP) in India?
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