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Panel on MSP

Here's everything you need to know about the Panel on MSP

Table of Content

Why in the News?

The Government of India recently formed a committee on Minimum Support Price(MSP).

Key Points:

It will be headed by Former Agriculture Secretary Sanjay Agrawal.
Objective: To look into the issues of minimum support price(MSP), Natural Farming and Crop diversification.
Terms of reference of the committee:
- To increase the autonomy of Commission for Agricultural Costs and Prices (CACP).
- To make MSP more effective and transparent.
- Suggest measures to promote zero-budget natural farming and
- Crop diversification to fulfil the changing food security requirement.
Challenges under MSP regime:
- Skewed MSP dominated system of rice and wheat leads to overproduction of these crops.
- Inflation is pushed by giving farmers increased prices.
- Benefits to a limited number of farmers, only about 2.2% of farmers.