Haryana Govt's Notification on MSP Procurement | 23 Dec 2024
Why in News?
Recently, the Haryana government has notified the procurement of 24 crops at Minimum Support Price (MSP), expanding the list from 14 crops to 24.
Key Points
- In addition to the crops that were already being procured, including paddy, bajra, kharif moong, urd, arhar, wheat and mustard,10 more crops approved for MSP are ragi, soybean, nigerseed, safflower, barley, maize, jowar, jute, copra, and summer moong.
- Existing crops under MSP include: paddy, bajra, kharif moong, urd, arhar, wheat, and mustard.
Minimum Support Price
- MSP is the minimum price at which the government guarantees to purchase certain crops from farmers to prevent distress sales and ensure fair prices.
- 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.