Give legal backing to MSP, says panel

Give legal backing to MSP, says panel


  1. Recently, the centre approved Minimum Support Prices (MSP) for kharif crops.

Important facts:

2. The government considers A2+FL’ as production cost.

3. A2+FL costs includes family labour, but not land costs.

4. However, some experts want comprehensive cost (C2) to be considered for MSP. C2 includes land costs. MSP based on C2 cost will be higher than the proposed figure.

5. The prices were recommended by the government panel.

6. The panel has also recommended that the Centre bring out a legislation which provides legal backup to farmers to sell their produce at those prices.

7. The Commission for Agriculture Costs and Prices , statutory panel under Ministry of Agriculture  makes the recommendations for MSP for 23 kharif and rabi crops.

8. However, its  suggestions are not binding on the government.

9. In its report titled ‘Price Policy for Kharif Crops for the Marketing Season 2018-19,’ the CACP highlighted that the procurement mechanism is broken for most crops and for most farmers.

10. However, the farmers of remote areas do not have sufficient access to APMCs and they sold their product at local ‘haat’s where their produce is sold below MSP.

11. Strong procurement operations need to be expanded to neglected regions especially eastern and north eastern regions.

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