MSP Current Affairs
The Cabinet Committee on Economic Affairs (CCEA) has approved increase in Minimum Support Price (MSP) for Fair Average Quality (FAQ) of “Milling Copra” for 2018 season. The approval was based on recommendations of Commission for Agricultural Costs and Prices (CACP).
The increased in MSP of Copra is expected to ensure appropriate minimum prices to farmers and step up investment in Coconut cultivation and thereby production and productivity in country.
The National Agricultural Cooperative Marketing Federation of India Limited (NAFED) and National Cooperative Consumer Federation of India Limited (NCCF) will continue to act as Central Nodal Agencies to undertake price support operations at MSP in the Coconut 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 Government prior to the 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 minimum support prices (MSPs) to 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.
The Cabinet Committee on Economic Affairs (CCEA) has approved increase in the Minimum Support Price (MSP) for raw Jute for 2017-18 season in order to protect the economic interests of the farmers.
The MSP was increased to Rs. 3500/- per quintal for 2017-18 season, an increase of Rs. 300/- (9.4%) over the previous year.
- Jute is long, soft, shiny vegetable fiber mainly used as raw material for Packaging Industry. It is also called as the golden fiber for its colour and high cash value.
- The increase in MSP will benefit Jute industry which supports the livelihood of around 40 lakh farm families and 3.7 lakh workers directly employed in the organised mills and in tertiary sector and allied activities.
- These farm families are mainly concentrated in three eastern states viz. West Bengal, Bihar and Assam which account for over 95% of the total area under jute production in the country.
- National Seeds Corporation Limited (NSCL) is promoting new varieties of jute viz., JRO-204, JBO-2003, JRS-517, JRC-532 and JRO-2407 under National Food Security Mission (NFSM)-Commercial Crops.
- In this regard, NSCL has entered into agreement for promotion of new varieties of jute seeds in the jute growing states.