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MSP hike for Kharif crops - Objectives & its impact on economy explained - Current Affairs 2018 Video Lecture | Indian Economy for Government Exams (Hindi) - Bank Exams
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| 1. What is the MSP hike for Kharif crops? |  |
Ans. The MSP hike for Kharif crops refers to the increase in the Minimum Support Price (MSP) for the crops grown during the Kharif season. The MSP is the price at which the government purchases crops from farmers to ensure a minimum income for them.
| 2. What are the objectives of the MSP hike for Kharif crops? | |
Ans. The objectives of the MSP hike for Kharif crops are to provide remunerative prices to farmers, ensure food security by maintaining an adequate supply of crops, incentivize farmers to increase production, and reduce distress sales.
| 3. How does the MSP hike for Kharif crops impact the economy? | |
Ans. The MSP hike for Kharif crops can have both positive and negative impacts on the economy. On the positive side, it can increase farmers' income, improve rural purchasing power, and stimulate rural demand. However, it may also lead to inflationary pressures, increase the fiscal burden on the government, and affect the competitiveness of Indian agricultural exports.
| 4. Which crops are covered by the MSP hike for Kharif crops? | |
Ans. The MSP hike for Kharif crops covers a wide range of crops including paddy, maize, bajra, turmeric, soybean, groundnut, cotton, sugarcane, jowar, and many others. The government announces MSPs for various crops to ensure farmers receive a fair price for their produce.
| 5. How is the MSP for Kharif crops determined? | |
Ans. The MSP for Kharif crops is determined by the government after considering various factors such as the cost of production, market prices, demand-supply dynamics, and the overall agricultural scenario. The Commission for Agricultural Costs and Prices (CACP) plays a crucial role in recommending MSPs based on these factors.
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