Government Expands Coverage of Minimum Support Price for Crops

The Government of India annually sets Minimum Support Prices (MSPs) for 22 designated agricultural crops, following the recommendations from the Commission for Agricultural Costs & Prices (CACP) and consultations with relevant State Governments and Central Ministries. MSPs are established considering factors such as production costs, demand-supply conditions, price parity, and the broader economic impact, with a minimum margin of 50% over production costs. The inclusion of crops under the MSP framework depends on characteristics like shelf life, perishability, and mass consumption. Post-announcement of MSP, crops such as cereals are procured by Food Corporation of India (FCI) and other State Agencies, providing farmers with price support. Other crops, including pulses, oilseeds, cotton, and jute, are procured under schemes like PM-AASHA involving agencies like NAFED and CCI. Farmers can choose between government procurement and open market sales based on their interests. This information was stated by Shri Ramnath Thakur, Minister of State for Agriculture and Farmers Welfare, in the Rajya Sabha.

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