what is minimum support price (MSP) and CAPC? - MAINS QUESTION - DAILY CURRENT AFFAIR QUESTIONS AND ANSWERS

Thursday, October 22, 2020

what is minimum support price (MSP) and CAPC?

MSP

The minimum support price is the price by which the product cannot be purchased directly from the farmer by giving a lower price due to the bumper production of a crop or its excess in the market, its price is declared in comparison, government agencies purchase most of the crops of farmers at minimum support price. The government announces the minimum support price before sowing the crop. Announcement of MSP Rabi and Kharif seasons are done twice a year by the government on the recommendation of the Commission for Agricultural Costs and Prices.The main objective of the minimum support price is to protect the farmers from exploitation by middlemen. Their yield
Grain is to be provided to the people by the public distribution system.


Commission for agricultural cost and price (CACP)


The Commission for Agricultural Costs and Prices is an attached office of the Ministry of Agriculture and Farmers Welfare, Government of India. This commission came into existence in January 1965. This commission balanced and integrated price structure of agricultural products.Established for the purpose of preparing. Agricultural Costs and Prices Commission Minimum Support Price of Agricultural Products
Gives advice on The Commission for Agricultural Costs and Prices while recommending the price policy for various commodities takes into account the following factors:

Demand and Supply

Cost of production

Price trends in both domestic and international markets

Inter-crop price parity

Terms of trade between agriculture and non-agriculture potential impact of MSP on consumers of that product.

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