In News: The Cabinet Committee on Economic Affairs, CCEA has approved Minimum Support Prices for copra for 2023 season.
The MSP for fair average quality of milling copra has been fixed at 10 thousand 860 rupees per quintal.
MSP for ball copra has been fixed at 11 thousand 750 rupees per quintal.
This is an increase of 270 rupees per quintal for milling copra and 750 rupees per quintal for ball copra over the previous season.
Minimum Support Prices (MSP)
The MSP is the rate at which the government purchases crops from farmers, and is based on a calculation of at least one-and-a-half times the cost of production incurred by the farmers.
The Commission for Agricultural Costs & Prices (CACP) recommends MSPs for 22 mandated crops and fair and remunerative price (FRP) for sugarcane.
CACP is an attached office of the Ministry of Agriculture and Farmers Welfare.
The mandated crops include 14 crops of the kharif season, 6 rabi crops and 2 other commercial crops.
In addition, the MSPs of toria and de-husked coconut are fixed on the basis of the MSPs of rapeseed/mustard and copra, respectively.
Support prices generally affect farmers’ decisions indirectly, regarding land allocation to crops, quantity of the crops to be produced etc
MSP assures farmers agricultural income besides providing a clear price signal to the market
The major objectives are to support the farmers from distress sales and to procure food grains for public distribution.
The government declares MSPs for crops, but there’s no law mandating their implementation
MSP is devoid of any legal backing. Access to MSP isn’t an entitlement for farmers. They cannot demand it as a matter of right.
The Centre currently fixes MSPs for 23 farm commodities based on the CACP’s recommendations —
