Q. Consider the following statements regarding minimum support price (MSP):
1.The Cabinet Committee on Economic Affairs (CCEA) is the approval authority of MSP.
2.It is an integral component of Agriculture Price Policy.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C
Notes:

Explanation: The policies of Government of India and decision taken in recent years towards farmers’ welfare have resulted insignificant improvement of food grain production and sustained agriculture growth despite COVID-19 pandemic.

  • The Cabinet Committee on Economic Affairs (CCEA) chaired by the Hon’ble Prime Minister Shri Narendra Modi has approved the increase in the Minimum Support Prices (MSP) for all designated Rabi crops for Rabi Marketing Season (RMS) 2022-23, when in advance of the sowing season.
  • MSP is an integral component of Agriculture Price Policy and it targets to ensure support price to farmers and affordable prices to the consumer.
  • Based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), the Government of India declares MSP after considering the views of State Governments and Central Ministries/Departments concerned for agricultural crops such as Cereal, Pulses, Oilseeds and commercial crops every year at the beginning of the sowing season.
  • MSP is announced for the Kharif crops of Paddy, Jowar, Bajara, Ragi,Maize, Arhar, Moong, Urad, Cotton, Groundnut, Sunflower Seed, Soyabean, Sesamum.
  • The Rabi crops for which MSP is announced are Wheat, Barley, Gram, Masur, Rapeseeds& Mustard, Safflower and Toria.
  • Apart from this, MSP is announced for Copra, De-husked Coconut, Jute and Fair Remunerative Prices (FRP) is announced for Sugarcane.

Source: https://pib.gov.in/PressReleaseIframePage