The Centre government has notified a committee tasked with making Minimum Support Price System more effective and transparent. According to the notification, the committee will also look at ways to make available MSP to farmers.
This tasked has been constituted by the Ministry of Agriculture and Farmers’ Welfare, as a follow-up to an announcement by Prime Minister Narendra Modi on November 19, 2021 withdrew 3 farm bills.
As per report the farmers protesting had three demands i.e Withdraw the three farm bills, Legal status to MSP, the Comprehensive cost price be taken for calculation of MSP.
This demand was accepted on 19th November 2021. However, to discuss the remaining two demands the government has constituted the Committee recently.
The Centre announces the MSP for 22 mandated crops on the basis of the recommendations of the Commission for Agricultural Costs & Prices (CACP).
These include 14 kharif crops : paddy, jowar, bajra, maize, ragi, tur, moong, urad, groundnut, soyabean, sunflower, sesamum, nigerseed, cotton.
Another six are rabi crops : wheat, barley, gram, lentil, rapeseed and mustard, and safflower and two are commercial crops: jute and copra.
NITI Aayog analysed that the main reason behind low income of farmer are crop failure and market failure i.e watage of crops due to poor monsoon, animal attacks etc, Price of food crops in the market becomes too low .
The panel will comprise Niti Aayog member Ramesh Chand, agri-economists CSC Shekhar from Indian Institute of Economic Development and Sukhpal Singh from IIM- Ahmedabad and Commission for Agricultural Costs and Prices (CACP) senior member Naveen P Singh.
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Know about MSP (Minimum Support Price Scheme)
- MSP is announce by the Cabinet Committee of Economic Affairs (CCEA)
- The MSP is the rate at which the government buys grains from farmers.
- The government announces MSP before the sowing season for a particular crop.
- This protects the farmer from market failure in case of bumper production.
