Minimum support price and procurement procedures

 MSP के बारे मे सारी जानकारी 

सारी फसलो की MSP के बारे मे जानने के लिये 2025 Click Here


Composition of the Commission

Chairman

:

Prof. Vijay Paul Sharma

Member (Official)

:

Dr. Naveen P Singh

Member (Non Official)

:

Shri Ratan Lal Daga

Organisation:

The Commission for Agricultural Costs & Prices (CACP), set up in January 1965, operates under the Ministry of Agriculture and Farmers Welfare, Government of India.

The Commission currently consists of a Chairman, Member Secretary, one Official Member, and two Non-Official Members. The Non-Official Members represent the farming community and typically have active involvement with it.

CACP's primary responsibility 👉recommend Minimum support prices (MSPs) recommend .

To encourage cultivators to adopt modern technology, improve productivity, and increase overall grain production according to the emerging demand patterns in the country.

The Commission for Agricultural Costs and Prices (CACP) currently sets Minimum Support Prices (MSPs) for 23 essential agricultural commodities, divided into various categories:

  • Cereals (7 varieties): Paddy, Wheat, Maize, Sorghum, Pearl Millet, Barley, and Ragi
  • Pulses (5 varieties): Gram, Tur, Moong, Urad, and Lentil
  • Oilseeds (7 varieties): Groundnut, Rapeseed-Mustard, Soybean, Sesame, Sunflower, Safflower, and Nigerseed
  • Commercial Crops (4 varieties): Copra, Sugarcane, Cotton, and Raw Jute

CACP submits its annual recommendations to the government through Price Policy Reports, categorized into five groups: Kharif crops, Rabi crops, Sugarcane, Raw Jute, and Copra.

Before finalizing the reports, the Commission gathers feedback through a detailed questionnaire sent to state governments and relevant organizations. It holds meetings with farmers, state authorities, national bodies like FCI, NAFED, CCI, JCI, and other stakeholders. The Commission also visits states to assess challenges farmers face in marketing or improving productivity. Based on this input, it finalizes its recommendations for the government.

The government circulates the CACP reports to state governments and concerned central ministries for feedback. After receiving their comments, the Cabinet Committee on Economic Affairs (CCEA) makes the final decision on the MSPs and other recommendations. Once the decision is made, CACP publishes its reports on its website, allowing stakeholders to understand the rationale behind the Commission's price and non-price recommendations.


सारी फसलो की MSP के बारे मे जानने के लिये 2025 Click Here

As per the Ministry of Agriculture (Department of Agriculture and Cooperation)’s Resolution No. 49011/6/2009-EA dated 30.07.2009, the Commission's Terms of Reference are as follows:

  1. Price Policy Advice:
    To advise on the price policy for the following commodities: paddy/rice, wheat, jowar, bajra, maize, ragi, barley, gram, tur, moong, urad, sugarcane, groundnut, soyabean seed, rapeseed, mustard, cotton, jute, sesame, nigerseed, lentil (masoor), safflower, copra, and any other commodities the Government may add from time to time. The goal is to develop a balanced and integrated price structure considering the overall economic needs, while also ensuring the welfare of both producers and consumers.
  2. Considerations for Price Recommendations:
    When recommending the price policy and price structure, the Commission shall consider the following factors:
    • Producer Incentives: The need to incentivize producers to adopt modern technology and develop production patterns in line with national requirements.
    • Resource Utilization: Ensuring rational utilization of land, water, and other production resources.
    • Economic Impact: Assessing the effects of the price policy on the broader economy, particularly on cost of living, wages, the cost structure of agro-based products, and the competitiveness of agriculture and agro-based commodities.
  3. Non-Price Measures:
    The Commission may suggest non-price measures such as credit policy, crop and income insurance, and other related sectors that could aid in achieving the objectives mentioned above.
  4. Policy Effectiveness:
    To recommend measures for making the price policy more effective for different agricultural commodities as necessary.
  5. Agricultural and Non-Agricultural Sector:
    To consider changes in terms of trade between the agricultural and non-agricultural sectors.
  6. Marketing and Costs:
    Where necessary, to review prevailing marketing methods and costs of agricultural commodities in different regions, suggesting measures to reduce marketing costs and recommending fair price margins at various marketing stages.
  7. Review of Price Situation:
    To continually monitor the developing price situation and make appropriate recommendations as needed within the framework of the overall price policy.
  8. Studies on Agricultural Crops:
    To undertake studies on various crops as directed by the Government from time to time.
  9. Data Collection and Research:
    To monitor studies related to price policies and the collection of agricultural price and related data, suggesting improvements where necessary. The Commission may also organize research studies on price policy matters.
  10. Advisory Role on Agricultural Prices:
    To advise on any problems related to agricultural prices and production as referred by the Government.
  11. Integration of Non-Price and Price Measures:
    To ensure effective integration of non-price recommendations with price recommendations and promote competitive agriculture.

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