Minimum Support Price
- Context: The Central Government has issued an order stating that State Governments must not provide any additional incentive amounts over and above the Minimum Support Price (MSP) fixed for agricultural produce.
About Minimum Support Price
- The Minimum Support Price (MSP) is a price fixed by the Government of India to ensure that farmers receive a minimum guaranteed income when market prices decline.
- It was introduced during the Green Revolution in 1966–67 with the aim of boosting agricultural production and ensuring food security.
- The Commission for Agricultural Costs and Prices (CACP) recommends this price based on economic and agricultural factors. The final decision regarding this is taken by the Cabinet Committee on Economic Affairs (CCEA).
- To provide financial support to farmers, the government fixes the MSP for a total of 22 crops.
- This includes 14 Kharif crops, 6 Rabi crops, and 2 commercial crops.
- Based on the prices of Mustard and Copra (dried coconut kernel), this support price is also extended to Toria and De-husked Coconut, respectively.
