What is difference between MSP and issue price?

Minimum Support Price (MSP) is promised by the government for any agricultural crop whereas the issue price is the price at which government issue the same agricultural crop.

Is procurement price is greater than market price?

Normally procurement price was lower than the open market price and higher than the MSP. This policy of two official prices being announced continued with some variation upto 1973-74, in the case of paddy.

Is sugarcane under MSP?

MSP of sugar has been fixed after taking into account the Fair & Remunerative Price (FRP) of sugarcane and minimum conversion cost of the most efficient mills.

WHO recommended the MSP and issue prices?

Detailed Solution. The Correct answer is Commission for Agricultural Costs and Prices. CACP recommends MSP to Cabinet Committee on Economic Affairs (CCEA) and its decision/recommendations are not binding. It is a statutory body under the Ministry of Agriculture.

Who decides MSP and issue price?

the Commission for Agricultural Costs and Prices
The Indian government sets the price for about two dozen commodities twice a year. MSP is fixed on the recommendations of the Commission for Agricultural Costs and Prices (CACP), an apex advisory body for pricing policy under the Ministry of Agriculture.

How MSP is determined?

The answer to the question is that the MSP is fixed by the Central Government of the 23 agricultural crops. It is based on the recommendations of the Commission for Agricultural Costs and Prices (CCP) and is also responsible for fixing the FRP (Fair and Remunerative Price) of sugarcane.

Is MSP a legal right?

MSP is the minimum price safety net provided by the government to farmers. It is through MSP that the government procures farmer produce to give them a guaranteed price, along with an assured procurement market. Without the legal mandate, the government is under no obligation to procure the 23 crops under MSP.