The Commission for Agricultural Costs and Prices (CACP) recommends minimum support price for how many crops (excluding sugarcane)?

The correct answer is 22.

Key Points

• The Commission for Agricultural Costs and Prices (CACP) recommends the Minimum Support Price (MSP) for 22 crops (excluding sugarcane).
• The 22 crops include 14 kharif crops (e.g., paddy, maize, cotton, etc.) and 6 rabi crops (e.g., wheat, barley, gram, etc.), along with 2 commercial crops (copra and raw jute).
• Sugarcane is not included in the 22 crops under MSP but is covered under the Fair and Remunerative Price (FRP), which is recommended separately by the CACP.
• The government announces MSPs every year before the sowing seasons to ensure farmers are protected from price fluctuations in the market.
• MSP is a crucial tool for ensuring food security and income stability for farmers in India.

Additional Information

• What is MSP?
  • The Minimum Support Price (MSP) is the price at which the government purchases crops from farmers, ensuring a minimum profit margin.
  • It acts as a safety net for farmers against market price fluctuations.
• Role of CACP
  • The Commission for Agricultural Costs and Prices (CACP), established in 1965, is an advisory body under the Ministry of Agriculture & Farmers’ Welfare.
  • It considers several factors, such as cost of production, demand-supply dynamics, and market trends, while recommending MSPs.
• Fair and Remunerative Price (FRP)
  • FRP applies specifically to sugarcane and is recommended by the CACP to ensure fair returns to farmers based on recovery rates and production costs.
  • Unlike MSP, sugar mills are legally obligated to pay farmers the FRP for their produce.
• Importance of MSP
  • MSP prevents farmers from distress sales during periods of low market prices.
  • It promotes agricultural diversification and ensures stability in the agricultural economy.
• Challenges in MSP Implementation
  • Many farmers are unaware of MSP benefits, and procurement is often limited to certain states and crops.
  • There is a need for robust infrastructure and increased coverage to ensure equitable benefits across regions.