1.The Union Cabinet approved the hike in minimum support prices (MSP) of wheat, masur, safflower and gram.
- The decision is in line with the government’s announcement to provide farmers a 50 per cent profit over the cost of production.
- The government announced a 6 percent to 21 percent hike in support price for rabi crops.
Minimum Support Price (MSP)
- MSP is a price at which the government buys crops from the farmers. This is irrespective of its price, to protect agriculture producers from sharp fall in prices.
- The support price has been increased based on the recommendations of farm advisory body Commission for Agricultural Costs and Prices (CACP).
Commission for Agricultural Costs and Prices
- Commission for Agricultural Costs and Prices (CACP) is an expert body which recommend minimum support prices (MSPs) to Government by taking into account cost of production, trends in domestic and international prices.
- It is an attached office of the Ministry of Agriculture and Farmers Welfare.
- Also, to address distress in the farm sector, the government had in July increased the paddy MSP by a record Rs 200 per quintal and gave a steep hike in other Kharif (summer-sown) crops.