MSP Full Form: Minimum Support Price. Which is called न्यूनतम समर्थन मूल्य in Hindi. MSP is a form of market intervention by the Government of India to insure agricultural producers against any price fall in agricultural prices.
What is the full form of MSP?
MSP full name: Minimum Support Price, under which the government buys the crops grown by the farmers at a minimum price. MSP is a guaranteed price of the product from the government to the farmers. The main objective of MSP is to support farmers from distress sales and purchase of food grains for public distribution.
If due to overproduction and overproduction of food grains in the market, the price of the market grains decreases, then the government agencies buy the entire quantity given by the farmers at the MSP price.
What is MSP?
In the above article, we have to know about MSP Full Form in detail, now we know what is MSP. MSP (Minimum Support Price) is the system in which farmers are given a minimum amount as remuneration for their produce. Under this system, the government fixes a minimum price for a crop, it is paid by the government agencies on the purchase of a particular crop.
When was MSP started?
The MSP system was introduced in the mid-1960s. The government wanted to increase the production of crops like wheat and paddy to ensure the benefits of green revolutions and to meet the growing demand for food grains domestically in the country.
Keeping these concerns of the farmers in mind, the government constituted a committee under the leadership of LK Jha in August 1964.
After the implementation of the recommendations of the committee, for the first time in 1966, the MSP for wheat was fixed at the rate of ₹ 54 per quintal.
Figures show that in 1970-71 the minimum support price of wheat and paddy was ₹76 and ₹54 per quintal respectively, which has been increased to ₹1975 and ₹1875 respectively by the year 2020.
How many crops on MSP is applied?
At present, the central government fixes the MSP for 23 crops
|Crop No||Crop Name|
|7||grains Paddy, Wheat, Maize, Bajra, Jowar, Ragi, and Barley|
|5||Moong, Gram, Tur, Urad, Pulses, and lentils|
|7||Oilseeds Mustard, Groundnut, Soybean, Sunflower, Sesamum, Safflower, and Nigerseed|
|Commercial Crops||Cotton, Sugarcane, and Raw Jute|
Loss of MSP
The 23 crops for which MSP is declared by the government. Out of that, except wheat and paddy, the rest of the crops are procured very little or only under the name of the minister.
If we talk about wheat and paddy, then it is not that the government is able to purchase the entire production of wheat or paddy at the fixed MSP in a year.
After fixing the MSP, the government does not purchase the crops directly, but through the local government agency, the Food Corporation of India stores the food grains with the FCI (National Agriculture Cooperative Marketing Federation of India Limited) by purchasing the food grains. Through PDS, food grains are delivered to the poor at cheap prices.
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