What is Minimum Support Price (MSP) | CACP

What is Minimum Support Price (MSP) 

What is MSP

The minimum price at which which Government will buy crop from farmer. This is meant to serve as “floor” price, below which Government will not allow prices to fall, EVEN If there was bumper crop.

On the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP), Government of India declares minimum support prices before each sowing season for certain crops. Government agencies purchase the entire quantity offered by the farmers at the announced minimum price. Thus, farmer always has the option to sell produce to government, if he can’t get remunerative prices from private merchants.

How MSP save farmers

1. Prevents Forces sale
• National Bank for Agriculture & Rural Development’s (NABARD)‘s’ All India Rural Financial Inclusion Survey 2016-17 found that the average monthly income of an agriculture household is less Rs.9,000/- from all sources combined (cultivation, wage labour, animal husbandry.)
• Thus, farmer rarely has surplus savings for buying inputs for the next cropping season. Access to credit (loans) is also difficult for small and marginal farmers.
• So, if they are forced into distress-sale of produce at throw-away prices, they’ll not be able to buy high quality seeds, fertilizers, pesticides & tractor-rent for next cropping season, which will further decrease their income from the next cycle. MSP prevents this phenomenon.
2. Informed Decision
• Government announces MSP before the sowing season for 23 crops including cereals, pulses, oilseeds & certain cash crops.
• This advance information helps the farmer to make an informed decision about which crop to sow for maximum economic benefit within the limitations of his farm size, climate and irrigation facilities.
3. Limitation for private buyers
• MSP sends a price-signal to market that if merchants don’t offer higher than MSP prices the farmer may not sell them his produce.
• Thus it acts as an anchor or benchmark for agro-commodity market. While it doesn’t guarantee that market prices will also be higher than MSP, but atleast it ensures the market prices will not drastically lower than MSP. [e.g. IF Mandi-cartel-mafias offers wheat purchase price at 90% lower than MSP, then their political masters from ruling party will put pressure on them lest the media and opposition parties make an issue of it!]

How MSP decieded

• Commission for Agricultural Costs and Prices (CACP) since ’85.
• Under Agriculture ministry (and NOT consumer affairs ministry). CACP Has two non-official members from farming community.
• CACP recommends minimum support prices (MSP) based on certain economic criteria.
• Subsequently, the center announces MSPs for 24 major agricultural commodities, including sugarcane, before each season.
• MSP announced for both RABI and Kharif SEASONS.

Season wise crops (Kharif, Rabi and Zaid)

Season	North India	South India
Kharif: June to Sept	Rice, Cotton, Bajra, Maize, Jowar, Tur	Rice, Maize, Ragi, Jowar, Groundnut
Rabi: Oct to March	Wheat, Gram, Rapeseeds and Mustard, Barley	Rice, Maize, Ragi, Groundnut, Jowar
Zaid: April-June	Vegetables, Fruits, Fodder	Rice, Vegetables, Fodder

What is Minimum Support Price (MSP) 

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What is White Revolution | Milk | Rashtriya Gokul Mission

What is White Revolution | Milk

The huge increase in milk supply through concerted efforts on a cooperative level is known as the White Revolution. Forty-eight years after Operation Flood – that made India the world’s largest milk producer – India continues to be on the lookout for the next breakthrough in agricultural produce and productivity.

White Revolution 2.0 has effectuated dairy firms’ marketing strategy for milk and milk products, resuscitating the outlook of product-market mix. India emerged as the largest milk producer and consumer in 2019. Currently India has 17% of world output of dairy products, surpassing USA in 1998 as world’s largest producer of dairy. All this was achieved by operation Flood which was launched in 1970’s.

Initiatives for the diary production and prevention:

1. National Programme for Bovine Breeding
2. Rashtriya Gokul Mission
3. National Kamdhenu Bredding Centres
4. E-Pashuhaat portal
5. National Programme for Dairy Development (NPDD)

The Government initiatives can ensure sustainable growth of the dairy sector as well as boost incomes of millions of small and marginal dairy farmers. Linking the animal husbandry with food processing industry, agriculture, researches & patents has all the possible potential to make India a nutritional power house of the world. Animal husbandry is the imperative hope, definite desire and urgent panacea for India as well as the world.

What is White Revolution | Milk

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What is Blue Revolution | fisheries

What is Blue Revolution | fisheries

Creating a separate department for fisheries in the Union government is a significant step. Fisheries are the primary source of livelihood for several communities. A concentrated effort by an independent department could help the government achieve its objective of doubling farmer’s income.

The fisheries and aquaculture production contribute around 1% to India’s Gross Domestic Product (GDP) and over 5% to the agricultural GDP. 

India is the world’s second-largest fish producer with exports worth more than Rs 47,000 crores. Fisheries are the country’s single-largest agriculture export, with a growth rate of 6 to 10 percent in the past five years. India’s long coastline has the potential of becoming the strength of the economy, particularly through exploitation of the Blue Economy, to ensure better standards and quality of life for a large number of people living in the coastal areas.

The new National Policy on Marine Fisheries, therefore, talks of introducing deep-sea fishing vessels and assisting fishing communities to convert their vessels and gears for the waters beyond. An integrated approach towards agro and food processing, preservation, packaging and maintenance of the cold chain will be our focus of attention.

The Blue Revolution scheme launched a few years ago seeks to make fishery and aquaculture a viable and rewarding vocation. The Blue Revolution mission aims at doubling the income of farmers. Fish Consumption must not lead to Exploitation which affects Sustainability. However, like in rest of the world, India’s fisheries sector faces the challenge of sustainability. The Food and Agriculture Organisation’s State of World Fisheries and Aquaculture reports note that nearly 90 per cent of the global marine fish stocks have either been fully-exploited, or over-fished or depleted to an extent that recovery may not be biologically possible.

What is Blue Revolution | fisheries

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What is Pulses revolution | National Food Security Mission

1.  Pulses occupy an important place in Indian agriculture. India moved from a situation of acute scarcity of pulses in 2015-16, to providing free pulses to most of the citizens in the country.
2. The 2015-16 pulses crisis was not a wasted opportunity; it set forth an ambitious and desirable outcome to make the country self-sufficient in pulses production.
3. The twin factors critical to an immediate increase in pulses production was the minimum support price (MSP) and procurement from farmers directly at MSP.
4. Additional coverage was provided for pulses under the National Food Security Mission (NFSM) launched in 2016-17.
5. As in the wheat and rice revolutions, the rewards of the increased pulse production are also being reaped by a few farmers, concentrated mostly in irrigated areas. Attracted by the high prices that such pulses as pigeon pea and chick pea fetch in the market, these farmers are now growing them on a regular basis.
6. Despite the increasing yields of some pulses, the demand for pulses has consistently exceeded production. Though India is the world's largest producer of pulses, it is also the largest importer.
7. According to ICRISAT there has been no concerted research effort on a particular pulse. The All India Coordinated Pulses Improvement Project has had to concentrate on 10 different crops simultaneously, so the relative research attention on each crop has been less than on rice or wheat.
8. India need to produce 40-50 lakh tonnes of additional pulses for meeting the domestic requirement and this can be possible only if we develop high yielding short duration, drought and insect-pest resistance varieties of pulses.
9. The important role that pulses can play in sustainable crop production systems, in particular through their contribution to improved soil fertility and to agro-biodiversity along with providing a balanced and healthy diet as evidenced by their use by the World Food Programme and other food aid initiatives makes it a naturally optimal choice.

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