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Panel on MSP

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

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.