(a) the objectives of the Minimum Support Price Policy;
(b) whether the Government is planning to include more commodities under the Scheme, if so, the details thereof;
(c) whether the Government is planning to take more factors into consideration for the calculation of MSP and if so, the details thereof and the reasons therefor; and
(d) the steps taken/being taken by the Department to impart awareness about the said Scheme to farmers?
MINISTER OF AGRICULTURE AND FARMERS WELFARE
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(a): The objective of the Minimum Support Price (MSP) Policy is to ensure remunerative prices to the growers for their produce with a view to encourage higher investment and production.
(b): Government fixes MSPs of 22 mandated crops on the basis of recommendations of Commission for Agricultural Costs & Prices (CACP), after considering the views of State Governments and Central Ministries/Departments concerned & other relevant factors. In addition, MSP for Toria and De-Husked coconut is also fixed on the basis of MSPs of Rapeseed & Mustard and Copra respectively. These MSP crops account for 99 percent of agricultural production (excluding horticulture) in the country.
(c): While recommending MSP, CACP considers various factors viz. cost of production, overall demand-supply situations of various crops in domestic and world markets, domestic and international prices, inter-crop price parity, terms of trade between agriculture and non-agriculture sector, likely effect of MSP on consumers and overall economy along with rational utilization of land, water and other production resources.
After announcement of Union Budget for 2018-19, CACP also considered a minimum of 50 per cent as the margin over cost of production while recommending MSP.
(d): MSP operations are given wide publicity through pamphlets, banners, sign boards, radio, TV and advertisements through print & electronic media. In addition to that farmers are made aware of the quality specifications and purchase system to facilitate the farmers to bring their produce conforming to the specifications.
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