MSP

                              

• The Minimum Support Prices were announced by the Government of India for the first time in 1966-67 for Wheat in the wake of the Green Revolution and extended harvest, to save the farmers from depleting profits. Since then, the MSP regime has been expanded to many crops. 
• Minimum Support Price is the price at which government purchases crops from the farmers, whatever may be the price for the crops.  The MSP is announced by the Government of India for 25 crops currently at the beginning of each season viz. Rabi and Kharif. Following are the 25 crops covered by MSP: 
• Kharif Crops:

                   Paddy,Jowar ,Bajra , Maize ,Ragi, Arhar(Tur), Moong ,Urad ,Cotton ,Groundnut 

                   Sunflower Seed, Soyabeen, Black Sesamum ,Nigerseed 

• Rabi crops:

                  Wheat, Barley ,Gram, Masur (Lentil) ,Rapeseed/Mustard ,Safflower, Toria 

• Other Crops 

                  Copra ,De-Husked ,Coconut ,Jute ,Sugarcane

• Rationale If there is a fall in the prices of the crops, after a bumper harvest, the government purchases at    the MSP and this is the reason that the priced cannot go below MSP. So this directly helps the farmers.

•  How MSP is decided? The government decided the support prices for various agricultural commodities after  taking into account the following: Recommendations of Commission for Agricultural Costs and Prices Views of State Governments Views of Ministries 

• Other relevant factors. Note: Price Support Scheme (PSS) for Oil seeds and Pulses The Department of Agriculture and Cooperation implements the Price Support Scheme for Oil Seeds and Pulses through the National Agricultural Cooperative Marketing Federation of India Ltd.(NAFED).NAFED is the nodal procurement agency for Oilseeds and pulses, apart from the Cotton Corporation of India. So, when the prices of oilseeds, pulses and cotton fall below MSP, NAFED purchases them from the farmers.