Minimum support price (MSP) for agriculture commodities in India


Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.

The minimum support prices are announced by the Government of India at the beginning of the sowing season for certain crops on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP).

The National Agricultural Cooperative Marketing Federation (NAFED), National Cooperative Consumers’ Federation (NCCF),

Central Warehousing Corporation (CWC) and Small Farmers Agri Business Consortium (SFAC) will be the nodal agencies for procurement of oilseeds and pulses, and losses if any, incurred by the nodal agencies in such operations would be fully reimbursed.

MSP are currently announced for 25 commodities or 23 crops. They are as follows,

Cereals (7):Paddy, Wheat, Barley, Jowar, Bajra, Maize and Ragi
Pulses (5):Gram, Arhar/tur, Moong, Urad and Lentil (in 2016 pulses are considered as bonus commodities for MSP)
Oilseeds (8): Groundnut, Rapeseed/mustard, Toria, Soyabean, Sunflower seed, Sesamum, Safflower seed and Niger seed
Others (5): 
, Raw cotton, Raw jute, Sugarcane, Virginia flu cured (VFC) tobacco

* Bonus amount included (for pulses 200 and oilseeds 100 per quintal)
Note: The government wants to assist farmers to earn 1.5 times the production cost, and the Minimum Selling Price (MSP) for the Kharif Crops has been set at 1.5 times the produce price.

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