Minimum Support Price (MSP) is the price at which government purchases the crop from farmer, whatever be the price of the crop. It is announced every year by Commission for Agriculture Cost and Price (CACP). Currently MSP is given to 27 crops at the beginning of every season viz. Rabi & Kharif.
- MSP serves as floor price and guaranteed income to the farmers.
-Government decides MSP of various Agricultural Commodities by a) Recommendations of CACP, b)views of state government c) views of ministries and other factors.
-Every year the Government tries to raise MSP as per demands and circumstances.
- Jute & Sugarcane have been assigned statutory status for MSP i.e.it is illegal to purchase both crops below their MSPs.
- Procurement price is the price to procure grain from producers, it is generally lower than open market price and higher than MSP.
- Similarly, the department of agriculture and cooperation implements Price Support Scheme for pulses and oilseeds via a nodal agency called National Agricultural Marketing Federation (NAFED).
- MSP serves as floor price and guaranteed income to the farmers.
-Government decides MSP of various Agricultural Commodities by a) Recommendations of CACP, b)views of state government c) views of ministries and other factors.
-Every year the Government tries to raise MSP as per demands and circumstances.
- Jute & Sugarcane have been assigned statutory status for MSP i.e.it is illegal to purchase both crops below their MSPs.
- Procurement price is the price to procure grain from producers, it is generally lower than open market price and higher than MSP.
- Similarly, the department of agriculture and cooperation implements Price Support Scheme for pulses and oilseeds via a nodal agency called National Agricultural Marketing Federation (NAFED).
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