Cost-Reflective Minimum Support Prices Framework Announced
The Government of India annually sets Minimum Support Prices (MSPs) for 22 agricultural crops based on recommendations from the Commission for Agricultural Costs & Prices (CACP). This process considers various factors including production costs, demand-supply conditions, and economic impacts. The Union Budget for 2018-19 established a principle to maintain MSPs at least 1.5 times the cost of production, leading to increased MSPs for Kharif, Rabi, and other commercial crops since 2018-19. This information was shared by Minister of State for Agriculture and Farmers Welfare, Shri Ramnath Thakur, in a Lok Sabha reply.
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