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MINIMUM SUPPORT PRICE (MSP)

MSP-driven procurement can place stress on storage and distribution systems, potentially resulting in wastage and inefficiencies in the agricultural supply chain.

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MINIMUM SUPPORT PRICE (MSP)

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  1. PLUTUS IAS

  2. Minimum Support Price (MSP) in India GS2: International Relations

  3. MINIMUM SUPPORT PRICE • In this informative piece, Rishabh explains the new update on the Minimum Support Price. Eminent instructor Vikas Gupta has carefully examined this article to make sure it is suitable for posting on the Plutus IAS website's current affairs space. 

  4. Minimum Support Price (MSP) in India • Introduction to MSP: • MSP is a government policy ensuring a minimum guaranteed price for agricultural crops, calculated at one-and-a-half times the cost of production. • Objectives of MSP: • Price Stabilization: MSP provides price stability and income security for farmers. • Crop Diversity: Encourages diversification in crop cultivation and sustainability. • Crops Covered by MSP: • Mandated Crops: MSP recommendations for 22 crops, including 14 kharif, 6 Rabi, and 2 commercial crops. • Sugarcane: Fair and Remunerative Price (FRP) for sugarcane. • Derivative MSPs: Some crops, e.g., toria and de-husked coconut, based on related crop MSPs.

  5. MSP and its Effects on the Economy • Enhancing Farmers' Income: Provides financial safety net for farmers. • Income Redistribution: Can reduce income inequality between rural and urban areas. • Food Security: Ensures a stable supply of essential agricultural products. • Inflationary Pressure: May contribute to inflation due to increased procurement costs. • Fiscal Burden: Strains government finances and impacts fiscal targets. • Trade Balance and Exports: May affect export competitiveness and trade balances. • Distorted Crop Selection: Farmers may over-prioritize MSP crops, neglecting others.

  6. Supply Chain Efficiency: Strains storage and distribution systems. • Market Distortions: Could discourage private investment in agriculture due to market uncertainties. • Policies and Regulations: Requires government intervention, influencing market dynamics. • Rural-Urban Linkages: Influences rural-urban migration patterns and urban development.

  7. Commission for Agricultural Cost & Prices (CACP) • Role of CACP: • Proposes MSPs for Kharif and Rabi crops to the Cabinet Committee on Economic Affairs (CCEA). • Objective: • Encourages modern technology adoption, resource utilization, and productivity among farmers. • Note: • Recommendations by CACP are not binding on the government.

  8. Best IAS coaching in Karol Bagh • Knowing daily current affairs updates for students aiming for UPSC exams is crucial.  The Plutus IAS website makes them readily available. • Plutus IAS is well-known for providing excellent IAS coaching in Karol Bagh. Our goal is to provide subscribers with up-to-date information about current affairs. We encourage potential UPSC exam takers to learn more about the academic programs offered by our prestigious institution.

  9. Thank You! For More Information Contact us on Call:- +91 84484-40231 Email:- Info@plutusias.com Visit us:- www.plutusias.com

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