Haryana: First State to Buy all Crops from Farmers at MSP

• 05 Aug 2024

Why in News?

Recently, Haryana Chief Minister announced the procurement of all crops in the state at the Minimum Support Price (MSP), thus becoming the first in the country to procure all crops at MSP.

Key Points

• The Chief Minister also announced the waiving of Rs 133 crore in outstanding canal water irrigation charges.
  • The payment of pending compensation of Rs 137 crore within a week to farmers who suffered crop damage because of natural calamity in Rohtak, Nuh, Fatehabad and Sirsa before 2023 was also announced.

Minimum Support Price (MSP)

• MSP is the guaranteed amount paid to farmers when the government buys their produce.
• MSP is based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), which considers various factors such as cost of production, demand and supply, market price trends, inter-crop price parity, etc.
  • CACP is an attached office of the Ministry of Agriculture and Farmers Welfare. It came into existence in January 1965.
• The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister of India takes the final decision (approve) on the level of MSPs.
• The MSP is aimed at ensuring remunerative prices to growers for their produce and encouraging Crop Diversification.