Minimum Support Price (MSP):
The Cabinet Committee on Economic Affairs (CCEA) has approved the increase in the MSP for all mandated Rabi crops for the Rabi Marketing Season 2022-23.
- This will ensure maximum remunerative price for farmers and also encourage them to sow a wide variety of crops.
- MSP is the rate at which the government buys grains from farmers. Currently, it fixes MSPs for 23 crops grown in both Kharif and Rabi seasons.
- The MSP is the rate at which the government purchases crops from farmers, and is based on a calculation of at least one-and-a-half times the cost of production incurred by the farmers.
- The Union Budget for 2018-19 had announced that MSP would be kept at levels of 1.5 the cost of production.
- The MSP is fixed twice a year on the recommendations of the Commission for Agricultural Costs and Prices (CACP), which is a statutory body and submits separate reports recommending prices for kharif and rabi seasons.