Hike in wheat MSP

Why is it in news?
  • The Cabinet has approved MSP hikes for six crops, including a 2.6% increase in the rate for wheat.
  • The MSP rates were also hiked for five other winter crops- barley, gram, masur dal, safflower, and rapeseed and mustard.
  • Last year, MSP for wheat had seen a 4.6% increase.
Details:
  • The move comes amid large protests by farmers in the country.
  • Farmers fearing that the new agricultural marketing reforms would result in the phasing out of MSP and public procurement.
About MSP
  • MSP is recommended by the Commission for Agricultural Costs and Prices (CACP), a decentralised agency underAgriculture ministry, government of India.
  • MSP is price fixed by Government of India to protect the farmers against excessive fall in price during bumper production years.
  • MSP announced for both RABI and Kharif SEASONS.
  • CACP has categorised three types of cost of production (CoP): A2, A2+FL and C2.
Posted by Jawwad Kazi on 22nd Sep 2020
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