Introduction to MSP - Essay

 Essay on MSP [importance, loss, meaning, full name, type, purpose, list of crops, MSP bill] MSP Nibandh [MSP Eassy, ​​Importance, Risk, Objectives, MSP Full Form, MSP Objectives]

Preface

In the past, there have been many incidents on the Punjab-Delhi border. These incidents mainly involved the farmers of India. The peasants of India became part of the movement that led to the "minimum support price" i.e. the MSP. Due to this one law, the farmer of the country had come on the streets and the matter had reached here, when the whole people had bribed him in Central Delhi on the 72nd Republic Day of India and hoisted the flag on the Red Fort. In view of the interests of the farmers of India, the country passed 3 Bills in the year 2020 and changed those bills into law with the signature of the President of India, President of India on the same Bills. After passing this law, there was a bit of an earthquake in the country. In two states of the country, Punjab and Haryana, this law was opposed, while in other parts of India, this law was also supported.

Meaning of MSP

A fixed rate / price on crops produced in India is called the minimum support price. That fixed amount on crops sold by farmers to the government is called MSP, the amount below which no crop will be purchased from farmers. This is a type of guarantee given by the government to farmers.

MSP Full Form

In normal language it is called MSP but its full name is "Minimum Support Price" in Hindi and in English language it is called "Minimum Support Price". There is a separate law on MSP in India and under this law, crops are purchased from farmers in India so that the farmers do not suffer any harm and the government can also meet the demand of the country.

Who decides the minimum support value

In India, the CACP has the right to fix the MSP, the minimum support price. CACP means Agricultural Costs and Prices Commission. This is the only commission in India that determines which crops in India will be charged how much MSP.

In India, this Commission does not fix the MSP on Gatre whereas the Sugarcane Commission has the authority to fix the MSP on sugarcane. At present, MSP has been prescribed by the Government of India on only 23 crops, which have 7 types of crops and 5 types of oilseeds, and other crops are also included in this.

CACP (Commission for Agricultural Costs and Prices)

Only this Agricultural Costs and Prices Commission has the right to fix MSP on crops in India -

This Agricultural Costs and Prices Commission in India was established in the year 1965. This Commission In India, this Commission works under the Ministry of Farmers and Welfare.

The purpose of the establishment of this commission is to create a balanced and integrated price structure of agricultural products. This Commission recommends this minimum support price to farmers.

The MSP is decided by this commission on 24 types of crops in India.

This commission fixes MSP only on fixed crops other than Gatre, only the Gatra Production Commission has the authority to fix MSP on Gatre.

The headquarters of the Agriculture and Cost Commission in India is located in Delhi, from where all its work and related management is done.

How MSP is decided

Some rules and factors have already been set for fixing the minimum support price in India and these rates are determined on the basis of these factors.

Costs on a productive crop - Before deciding the rate on any crop, it is important to know how much it costs to sow which crop from harvesting to harvesting. For example, if a farmer sows and harvests a wheat crop, then the farmer spends 500 rupees to grow this crop, then the government will decide that on the wheat crop How much more money should be given to the farmer in the form of MSP.

Inflation of that time - To determine the MSP, it is also kept in mind that when the crop was sown and the time when that crop was harvested, there was so much inflation at that time. In MSP, inflation means that in which it is seen that by growing the crops, which items were used in the middle of the process in harvesting and how much was spent in using those items.

The current price trend in the market - while deciding the MSP, care is also taken on what is the value of the crops present at the time when the MSP is being decided. This basis is given considerable importance in deciding the MSP.

Market demand and supply situation - how much demand is there for which crop in the market and how much is being met. While deciding the MSP, care is also taken about how much demand is there in the market for this crop and how much is being supplied for that crop. If the demand is more in the market and supply is being reduced, then the MSP is determined more in such a way, and if the demand for the commodity is less in the market and more is being fulfilled, then in such a situation, the MS. P is determined to be normal.

Price of the current crop - Before fixing the MSP on the crops, it is also decided that the price of this crop is going on in the market at present. The MSP is decided on these crops only on the basis of the price of the current crop.

Benefit of MSP

From the MSP it is decided that at which rate the government will buy the crop from the farmers. No crop can be purchased at a rate lower than its fixed rate for purchasing crops from farmers. Because of this, it can be said that one of the biggest advantages of MSP is that even if the prices of crops fall in the market, then in that case any crop at a lower rate than the MSP Will not buy, the government will have to buy the crop according to the rate fixed in MSP. In India, MSP is fixed twice on all types of crops.

MSP objectives

MSP is already being prescribed on crops in India, which has some objectives, this objective explains the characteristics of MSP and makes this MSP system special -

Preventing Exploitation - By fixing the MSP, farmers get to decide what rate will be fixed on which crop. By setting the MSP, exploitation of farmers can be prevented. No one buys a crop below MSP, nor can any farmer sell his crop at a lower rate.

Putting down on falling and rising prices - If the price of any crop falls suddenly, in that case the crops will have to be purchased at the fixed MSP. This will prevent exploitation of farmers.

On which crops MSP is given

The crops that have been kept under MSP, crops and oilseeds are kept in those crops. The crops specified include 14 Kharif crops and 6 Rabi crops and 2 other commercial crops. Also, the minimum support prices for some crops like rapeseed and coconut are decided on the basis of minimum support prices for mustard and dried coconut respectively.

List of crops:

Cereals (7) - Paddy, wheat, barley, jowar, millet, maize and ragi

Lentils (5) - gram, pigeonpea, moong, urad and lentils

Oilseeds (8) - Groundnut, mustard, rapeseed (lahi), soybean, sunflower seeds, sesame seeds, safflower seeds, ramtil seeds

Raw cotton, raw jute, coconut, dry coconut

Sugarcane (Fair and Remunerative Price)

Method of production cost determination

In India, the Agriculture and Cost Commission has adopted some simple methods for determining the cost of production, on the basis of which the cost is fixed on the crops. For fixing the cost of crops, the Commission on Agriculture and Cost decides based on the data available in the statistics department. The Agriculture and Costs Commission does not take any factory from the ground level to see how much the actual expenditure on sowing of crops is.

The CACP (Commission for Agricultural Costs and Prices) determines the rate based on 3 types of formulas, both at the state and the central level, to determine the MSP of crops.

A2 - In this formula all the rates are fixed in which it is seen how much the farmers spent directly on seeds, fertilizers, pesticides, labor, leased land, fuel, irrigation etc. in growing the crop. It has been decided on the basis of which the rate can be fixed on these crops.

A2 + FL - In this formula, whatever family spending is unethical is also seen.

C2 - This formula is considered more commercial. In this, the MSP is decided on the basis of the fixed and movable land of the farmers and the interest thereon.

Why is MSP currently under discussion?

Currently, after passing the new law bill, farmers from many other states across the country, including Punjab and Haryana, are protesting against this new agricultural laws on the borders of the capital Delhi. One of the main demands of the protesting farmers in this movement is that in the new law, the government should provide a guarantee in writing about the minimum support price system, which assures them a fixed price for their crops grown by them.

MSP launches in India

In order to protect the interests of farmers in India and to give them good profits, the Agriculture and Excise Commission was established in the year 1965. This MSP was started under this commission. Recently it has been seen how pathetic the government is towards the farmers and is making very good efforts for the farmers.

What is MSP Bill?

Recently, the central government has passed 3 bills in the bill keeping in mind the interests of farmers. According to this bill, farmers will be able to sell their crops in the market at the lowest rate. If the central government believes it will not affect msp. msp is retained as before. The purpose of this bill is that through this, the middlemen in the market are being removed from the farmers.

Epilogue

The government of India is quite pathetic on agriculture in India. SMP was started in the year 1966 with the objective that the crops of the farmers should be purchased at a fixed rate so that the farmers are not exploited and the farmers get the full value of their crops. This system has been active since the beginning of MSP and farmers are being given regular benefits.