Minimum Support Prices (MSP) For The Kharif Season 2022-23:
The Centre has approved the Minimum Support Prices (MSP) for the Kharif season 2022-23, stating that the rates are at least 1.5 times of the weighed average cost of production.
- The rates for 14 Kharif crops have been increased, the hikes ranging from 4% to 8%.
- 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.
- MSP is a “minimum price” for any crop that the government considers as remunerative for farmers and hence deserving of “support”.
- The Commission for Agricultural Costs & Prices (CACP) recommends MSPs for 22 mandated crops and fair and remunerative price (FRP) for sugarcane.
- CACP is an attached office of the Ministry of Agriculture and Farmers Welfare.
- The mandated crops include 14 crops of the kharif season, 6 rabi crops and 2 other commercial crops.
- In addition, the MSPs of toria and de-husked coconut are fixed on the basis of the MSPs of rapeseed/mustard and copra, respectively.
Factors for Recommending the MSP:
- The CACP considers various factors while recommending the MSP for a commodity, including cost of cultivation.
- It takes into account the supply and demand situation for the commodity, market price trends (domestic and global) and parity vis-à-vis other crops, and implications for consumers (inflation), environment (soil and water use) and terms of trade between agriculture and non-agriculture sectors.