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PIB Summary- 9th June, 2022 | PIB (Press Information Bureau) Summary - UPSC PDF Download

Minimum Support Price

Why in News?
The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister has approved the increase in the Minimum Support Prices (MSP) for all mandated Kharif Crops for Marketing Season 2022-23. 

What is Minimum Support Price (MSP)?

  • Minimum Support Price is the price at which government purchases crops from the farmers, whatever may be the price for the crops.
  • MSPs have no statutory backing — a farmer cannot demand MSP as a matter of right.
  • Commission for Agricultural Costs & Prices (CACP) in the Ministry of Agriculture recommends MSPs for 23 crops.
  • CACP consider various factors while recommending the MSP for a commodity like cost of cultivation, supply and demand situation for the commodity; market price trends (domestic and global) and parity vis-à-vis other crops etc.
  • MSP seeks to:
    (i) Assured Value: To give guaranteed prices and assured market to the farmers and save them from the price fluctuations (National or International).
    (ii) Improving Productivity: By encouraging higher investment and adoption of modern technologies in agricultural activities.
    (iii) Consumer Interest: To safeguard the interests of consumers by making available supplies at reasonable prices.

While recommending MSPs, the CACP looks at the following factors:

  • the demand and supply of a commodity;
  •  its cost of production;
  •  the market price trends (both domestic and international);
  • inter-crop price parity;
  • the terms of trade between agriculture and non-agriculture (that is, the ratio of prices of farm inputs and farm outputs);
  • a minimum of 50 per cent as the margin over the cost of production; and
  • the likely implications of an MSP on consumers of that product.

Crops covered

Crops covered by MSPs include:

  • 7 types of cereals (paddy, wheat, maize, bajra, jowar, ragi and barley),
  •  5 types of pulses (chana, arhar/tur, urad, moong and masur),
  • 7 oilseeds (rapeseed-mustard, groundnut, soyabean, sunflower, sesamum, safflower, nigerseed),
  • 4 commercial crops (cotton, sugarcane, copra, raw jute)

Why is there a need for MSP?

  • The MSP is a minimum price guarantee that acts as a safety net or insurance for farmers when they sell particular crops.
  • The guaranteed price and assured market are expected to encourage higher investment and in adoption of modern technologies in agricultural activities.
  • With globalization resulting in freer trade in agricultural commodities, it is very important to protect farmers from the unwarranted fluctuation in prices.

What are the issues related to MSP?

  • Low accessibility and awareness of the MSP regime: A survey highlighted that, 81% of the cultivators were aware of MSP fixed by the Government for different crops and out of them only 10% knew about MSP before the sowing season.
  • Arrears in payments: More than 50% of the farmers receive their payments of MSP after one week.
  • Poor marketing arrangements: Almost 67% of the farmers sell their produce at MSP rate through their own arrangement and 21% through brokers.
  • According to NITI Aayog report on MSP, 21% of the farmers of the sample States expressed their satisfaction about MSP declared by the Government whereas 79% expressed their dissatisfaction due to various reasons. Although, majority of the farmers of the sample States were dissatisfied on MSP rates, still 94% of them desired that the MSP rates should be continued.

CiSS Application

Why in News?
The National Commission for the Protection of Child Rights (NCPCR) has launched a “CiSS application” under the Baal Swaraj portal to help in the rehabilitation process of Children in Street Situations (CiSS).

CiSS Application

  • The CiSS application is used for receiving data of children in street situations from all the states and union territories, tracking their rescue and rehabilitation process.
  • The initiative is taken under the direction of the Supreme Court of India.
  • The program embodies Article 51 (A) of the Constitution of India, as it provides a platform to the public and organizations catering to the welfare of the children to report any child in need of assistance.
  • The platform serves to collect data and report to the District Child Protection Officer (DCPO) for them to take necessary action.
  • It also provides a platform for professionals and organizations to provide any help that they can to children in need.
  • Help can be provided in the form of open shelters, counselling services, medical services, sponsorships, de-addiction services, education services, legal/paralegal services, volunteering etc.
  • It categorizes any child under ‘Children in Street Situation’ if the child is living on the streets alone, living on the streets during the day, or living on the streets with the family.
  • The root cause of this phenomenon is the migration of families from rural to urban areas in search of a better standard of living.

How does it work?

  • Collection of the child’s details, which is accomplished through the portal.
  • Social Investigating Report (SIR)e, investigating the child’s background. This is done under the supervision of the District Child Protection Unit (DCPU) by the District Child Protection Officer (DCPO) by conversing and counselling the child.
  • Formulating an Individual Care Plan (ICP) for the child.
  • Child Welfare Committee (CWC) based on the SIR submitted to the CWC.
  • Allocating the schemes and benefits that the beneficiary can avail of.
  • A checklist is made for the evaluation of the progress i.e. (Follow Ups).
The document PIB Summary- 9th June, 2022 | PIB (Press Information Bureau) Summary - UPSC is a part of the UPSC Course PIB (Press Information Bureau) Summary.
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FAQs on PIB Summary- 9th June, 2022 - PIB (Press Information Bureau) Summary - UPSC

1. What is the Minimum Support Price (MSP)?
Ans. The Minimum Support Price (MSP) is a price set by the government to ensure that farmers receive a fair and remunerative price for their crops. It acts as a safety net for farmers and protects them from fluctuations in market prices.
2. How is the Minimum Support Price determined?
Ans. The Minimum Support Price is determined by taking into consideration various factors such as the cost of production, market demand and supply, domestic and international prices, and the interests of farmers. The government consults with various stakeholders, including farmers' organizations and agricultural experts, to determine the MSP for different crops.
3. Which crops are covered under the Minimum Support Price?
Ans. The Minimum Support Price is applicable to various crops such as rice, wheat, pulses, oilseeds, and cotton, among others. The government announces MSPs for different crops before the sowing season to provide clarity to farmers about the expected price they will receive for their produce.
4. What are the benefits of the Minimum Support Price for farmers?
Ans. The Minimum Support Price provides several benefits to farmers. It ensures a fair and guaranteed price for their crops, protects them from market fluctuations, and encourages them to invest in agricultural activities. It also helps in maintaining food security and stabilizing prices in the market.
5. How does the Minimum Support Price impact consumers?
Ans. The Minimum Support Price can have an indirect impact on consumers. If the MSP for a particular crop is set too high, it can lead to an increase in the market price of that crop, which may affect the affordability of certain agricultural commodities for consumers. However, the government takes measures to balance the interests of both farmers and consumers while determining the MSP.
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