Dayakrishna Chauhan, New Delhi: The biggest issue between the farmer and the government is the MSP on the new agricultural laws enacted by the central government. The government says that in the new laws, there is no mention of eliminating MSP anywhere, but farmers say that it is a matter of concern that the government has not written anything about MSP. Farmers fear that the government will abolish MSP in the coming days and farmers will be left to corporates.
However, many people still do not know what the MSP is and who decides it. Many people may not even know that the new agricultural laws have talked about the product, but the government gives MSP on only 23 crops to the farmers.
What is an MSP:
Minimum Support Prices – The government undertakes market intervention to benefit the people while keeping the economy right. The government has fixed a rate of the crop to give such benefit to the farmers, so that the purchase at a lower rate will not happen in the market of APMC. However, some crops are also procured by the government and they pay the people on the MSP. The crop that the government buys, it is called the purchase price and at one time both the purchase price and the MSP were different, but now both have the same meaning.
Who decides MSP:
The Central Government’s Commission is decided by the MSP, named as CAPC (Commission for Agricultural Costs and Prices). It estimates how much it is going to cost farmers to grow a crop and sends it to another institution after fixing a price. The institution to whom this price is fixed and sent, is called CCEA (Cabinet Committee on Economic Affairs). It is the Cabinet Committee on Economic Affairs, which decides the prices sent to the CAPC. It is decided before sowing the crop.
In order to operate MSP, APMC ensures that it should not buy and sell at a lower price. At the same time, the government buys the crop through FCI, it also suggests the price.
Which crop is decided by the MSP?
The MSP of the crop consisting of 7 types of grains, 5 types of pulses and oil is decided by the government. Along with this it is given over some commercial crops like jute, sugarcane etc. In total, the MSP of 22 + 1 crops is fixed. Although the MSP of sugarcane is not fixed, it has a similar system. Sugarcane rate is called Fair and remunerative price (FRP).
Also, the farmer does not get any MSP on fruits, vegetables, flower dairies and fisheries. Only 6 percent of India’s farmers can take advantage of this. MSP is available on 22 + 1 crops, but the government buys only wheat and rice. Everyone else is guaranteed by the government.
How MSP works:
The farmer carries his goods to the APMC. With this, APMC has government procurement centers and farmers can go and sell their crops there.