Press Information Bureau
Government of India
Ministry of Agriculture & Farmers Welfare
24-August-2012 15:10 IST
Steps to Ensure Profitable Prices of Produce to Farmers
The Government fixes the Minimum Support Prices (MSPs) of various crops on the recommendations of the Commission for Agricultural Costs & Prices (CACP), the views of concerned State Governments and Central Ministries/Departments to ensure a minimum return to the growers. While formulating its recommendations on price policy, CACP considers a number of important factors which include, interalia, cost of production, changes in input prices, trends in market prices, demand and supply situation, effect on general price level, effect on cost of living etc.

Minimum Support Price (MSP) is in the nature of a minimum guaranteed price for the farmers offered by the Government for their produce in case the market prices fall below that level. If the market offers higher price than MSP, the farmers are free to sell at that price.

The agriculture sector has grown at an average of 3.3% per annum in the Eleventh Five Year Plan as compared to 2.3% during Tenth Five Year Plan. The total number of cultivators has also increased since 1951.

In addition, the Government is implementing various programmes/schemes, inter alia, with the objective of improving productivity, profitability and economic viability of farming which includes Rashtriya Krishi Vikas Yojana (RKVY), National Food Security Mission (NFSM), National Horticulture Mission (NHM) etc.

This information was given by Shri Harish Rawat, Minister of State for Agriculture and Food Processing Industries in written reply to a question in the Rajya Sabha today.

MP:CP: prices (24.8.2012)