The Narendra Modi government might announce a minimum support price (MSP) on rabi crops soon.
Sources told CNBC-Awaaz that the Commission for Agricultural Costs and Prices has recommended increasing the MSP on rabi crops from three to nine percent. The Centre is likely to take a decision on this proposal soon.
Apart from wheat, the government will decide on the MSP of six other crops — barley, chickpea (chana), lentil (masoor), mustard (sarson), safflower. It is believed that the government will increase the MSP of lentils the most.
The current harvest is for the marketing season 2023-24.
What is MSP?
MSP is a remunerative price to help farmers gain adequate returns on their produce. In simple words, MSP is a shield that protects farmers from a sudden dip in prices. So, it is conducive in maintaining food security and provides a base for price discovery in the market. This gives financial stability to the agriculture system and encourages better production.
The CACP considers these factors as an important basis to fix MSP:
First Published: Oct 11, 2022 6:21 PM IST
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