Implementing various suggestions given by Swaminathan commission would be a right step instead of considering MSP as the panacea.Also, other steps like improving the irrigation facilities, implementing land reforms and access to technology are necessary to make farming more remunerative to farmers.Doing away with MSP without taking the farmers into confidence is not the right step.The significant increase in buffer stocks adds up to huge storage and transportation costs.The production of rice and wheat greatly increased at the expense of other crops like pulses.Although the government announces MSP for 23 crops, only 2-3 crops are effectively procured.MSPs would encourage farmers to sow these crops and thereby maintain a healthy supply.įacts you should know about the Minimum Support Price In such cases, farmers might not prefer to sow the aforesaid crop next season.The prices of farm commodities are dependent on various factors such as good harvest season which leads to fall in prices.To safeguard farmers from the market price fluctuations.
Note: Subscribe ClearIAS YouTube Channel to learn from more free videos. They belong to the family of cereals (7), pulses (5), oilseeds (7) and commercial crops (4). C2 which includes A2+FL along with the interests foregone.Īs of now, 23 crops are being supported by the centre by fixing of MSP.A2+FL which takes into account the estimated value of the unpaid labour of family members.A2 which covers all the cash and kind expenses of the farmers.CACP submits two separate reports for Kharif and rabi seasons and based on these, centre fixes MSPs twice a year.ĬACP considers the following three costs while recommending MSP. It is fixed by the centre based on the recommendations of the Commission for Agricultural Costs and Prices (CACP) which is a statutory body. A minimum support price was guaranteed to them. To boost the domestic production and encourage farmers to plant the high yielding varieties, the government resorted to MSP. MSPs were first introduced in 1966-67 when the country adopted Green Revolution technologies.