Which commodities comes under MSP?

As of now, CACP recommends MSPs of 23 commodities, which comprise 7 cereals (paddy, wheat, maize, sorghum, pearl millet, barley and ragi), 5 pulses (gram, tur, moong, urad, lentil), 7 oilseeds (groundnut, rapeseed-mustard, soyabean, seasmum, sunflower, safflower, nigerseed), and 4 commercial crops (copra, sugarcane.

How does the government decide MSP?

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. However sometimes there are large differences between what the CACP recommends and the prices that the government recommends.

What is MSP wheat?

Govt hikes wheat MSP by Rs 40 to Rs 2,015 per quintal for 2021-22 crop year. Wheat MSP has been increased by Rs 40 to Rs 2,015 per quintal for this crop year from Rs 1,975 per quintal in the 2020-21 crop year. The cost of production of wheat is estimated at Rs 1,008 per quintal, the release said.

Is rice under MSP?

2015-16 to 2019-20 in Lakh Tons In the case of Rice, a major portion of produce in Punjab, Telangana, Haryana, Andhra Pradesh, Chhattisgarh and Odisha is procured by the government at MSP. Roughly around 90\% of the rice produce in Punjab and Haryana is procured by the government.

Which method is widely used to determine MSP?

The MSP is usually based on the recommendations by the Commission for Agricultural Costs and Prices. This estimation is usually done based on three types of calculation methods. These are A2 method, A2+FL method and C2 method.

What is the MSP for rice?

Agencies The Cabinet has approved an increase in the MSP of paddy (common variety) to Rs 1,940 per quintal for the 2021-22 crop year (July-June) from Rs 1,868 per quintal in the year-ago period.

What is the MSP of mustard?

MSP for mustard is up 8.6\%, followed by masur (7.84\%) and gram (2.54\%). Wheat MSP has just risen by 2.02\%, as govt attempts to encourage crop diversification.

Is cotton under MSP?

The new cotton crop has begun arriving in northern markets, Karnataka and Telangala with prices of kapas (raw cotton) ruling at least 10 per cent higher than the minimum support price (MSP) levels fixed by the Centre for the new season starting October. Prices are higher than the MSP of ₹5,726 per quintal.

What is C2 method of MSP?

The C2 formula of calculating cost of cultivation includes the imputed cost of capital and the rent on the land to give farmers 50\% returns, rather than a narrower measure that takes into account the all paid-out costs incurred by a farmer and the value of family labour (A2+FL ).

Is MSP guaranteed by law?

There is currently no statutory backing for these prices, nor any law mandating their enforcement. The government only procures about a third of wheat and rice crops at MSP rates (of which half is bought in Punjab and Haryana alone), and 10\%-20\% of select pulses and oilseeds.