Minimum Support Price Current Affairs - 2019
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The Union Tribal Affairs Minister Jual Oram launched the revised MSP for MFP for the welfare of Tribals at the National Workshop organized by TRIFED under Ministry of Tribal Affairs.
MSP for MFP
Minimum Support Price Scheme (MSP) for Minor Forest Produce (MFP) is a centrally-sponsored scheme aimed to ensure fair and remunerative price to MFP gatherers.
The scheme is officially known as ‘Mechanism for marketing of Minor Forest Produce (MFP) through Minimum Support Price (MSP) and development of value chain for MFP’ was planned as a social safety initiative for MFP gatherers.
The MSP for MFP scheme was first launched in 2013 but the severe gaps in its implementation led to the programme remaining dormant. To revitalize the programme the revised guidelines have been issued. The revised guidelines:
- Provide for a revised MSP in the range of 30-40% on average.
- The procurement of these MFPs will commence in haat bazars, where tribals bring their produce with the facilitation provided by state government agencies and district collectors.
- Lay down a decentralised implementation framework.
The implementing agency TRIFED has asked the states to submit within 45 days their roadmap for procurement and marketing of produce from the village level to the state level
For the value addition of MFPs, better marketing opportunities under the Van Dhan Scheme was launched last year. The Tribal Affairs Ministry is now planning to scale up this scheme to all tribal districts. The Ministry has asked the state government to prepare and share plan to set up the Van Dhan centres meant to value add to forest produce to boost the market for products made from MFPs.
The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has given its approval for increase in Minimum Support Price (MSP) for Raw Jute for 2018-19 season. The MSP for Fair Average Quality (FAQ) of Raw Jute was increased to Rs.3700 per quintal for 2018-19 season from Rs. 3500 per quintal in 2017-18 season.
The increased MSP was based on recommendations of Commission for Agricultural Costs and Prices (CACP) which had taken into account cost of production, overall demand-supply, domestic and international prices before recommending MSP for Raw Jute.
The increased MSP of Raw Jute is expected to ensure appropriate minimum prices to farmers and step up investment in Jute cultivation and thereby production and productivity. The Jute Corporation of India (JCI) will continue to act as Central Nodal Agency to undertake price support operations at MSP in Jute growing states.
Minimum Support Price (MSP)
MSP is form of agricultural market intervention undertaken by Central Government in order to insure agricultural producers are protected against any sharp fall in farm prices. It is announced for certain crops by Central Government prior to sowing season.
Its purpose is to incentivize cultivators to adopt modern technology and raise productivity and overall production in line with the emerging demand patterns in the country. The prices are decided by CCEA on the basis of recommendations of the Commission for Agricultural Costs and Prices (CACP).
Commission for Agricultural Costs and Prices (CACP)
CACP is an expert body which recommend MSPs on various crops to Central Government (CCEA) by taking into account cost of production, trends in domestic and international prices. It is an attached office of the Ministry of Agriculture and Farmers Welfare. It came into existence in January 1965. Currently, CCEA comprises Chairman, Member Secretary, one Member (Official) and two Members (Non-Official). The non-official members are representatives from farming community and usually have active association with farming community.