Nyonatam samarthan mooly (FRP) kya hain?

What is MSP?

The M S P stands for Minimum Support Price  is the price of a commodity fixed by the government before the sowing season .

Minimum Support Price is the price which government pays to procure the crops from farmers.

 The Minimum Support Price is a minimum guarantee price that safeguards farmers .

Who fixes MSP?

On the recommendation of the commission for agricultural costs and prices and department of agriculture and co-operation, government of India, declares Minimum Support Price (M S P) for 23 crops before  sowing season.

The prices are recommended by Commission for Agricultural Costs and Prices for all products, food grains are procured by    

Food Corporation of India( F C I )and pulse and oil seeds are procured (by N A F E D)  National Agricultural Cooperative Marketing Federation.

Gardening, vegetables, fruits or dairy product have no such support.

How MSP is calculated?

Minimum Support Price is based on economic criteria such as demand and supply situation, prices at domestic and international market and cost of production and inter-crop price parity and trade policy in agriculture and effect on general price level etc.

The Swaminathan Committee prescribed three variables to determine the production cost. These three variables are:

A2: These are the out-of-pocket expenses incurred by farmers including loans for Fertilizer, fuel, machinery, irrigation, etc. and cost of leasing land.

A2+FL: (actual paid out cost plus imputed value of family labour) This is the estimated value of the unpaid labour for harvesting crops such as contribution of family member and other.

C2: ( second cervical vertebra )Comprehensive Cost (C 2) is the actual cost of production as it takes into account for rent and interest foregone on the land and machinery owned by farmers, in addition to  A2+FL (actual paid out cost plus imputed value of family labour) rate.

As per Committee the ideal formula to calculate the (M S P) Minimum Support Price  would be:

M S P = C2+ 50% of C2

What is 1.5 times formula for MSP?

The Commission for Agricultural Costs and Prices (CACP )stated the given 1.5 times formula to calculate the Minimum Support Price ( MSP):

1.5 times (MSP )Minimum Support Price   Formula = 1.5 times the A2+FL costs

List of Crops under MSP

(CACP) Commission for Agricultural Costs and Prices recommends Minimum Support Price (MSP) of 23 commodities, which comprise

• 7 Cereals ( Wheat , Maize, Rice , Barley , Oats , Sorghum , Pearlmillet. ),

• 5 Pulses (gram, tur, moong, urad, lentil),

• 7 Oil seeds (soybean ,groundnut, rapeseed-mustard, , seasmum, sunflower, safflower,nigerseed)

• 4 Commercial crops (sugarcane, cotton and raw jute, copra,).

Why Farmers fear that Farm Laws will do away with the MSP?

Farmers fear that the three farm bills passed by the Narendra Modi government will abolish  the Minimum Support Price( MSP) as these bills do not  mentions about the Minimum Support Price (MSP).

Though the government has announced  that the Minimum Support Price( MSP) will stay, farmers find it hard to trust.

What is Procurement price?

(PP) Purchase Price is the price at which govt purchases the crop after harvesting .

The main difference between Procurement Price and Minimum Support Price (MSP) is that (MSP) is declared before sowing while PP is declared after harvesting.

Since 1968-69 there is no practice of declaring separate Procurement Price and Minimum Support Price( MSP) is usually considered as the Procurement Price.

Procurement prices is  greater or equal to the Minimum Support Price (MSP).

What is Issue Price?

The Price at which the Food Corporation of India (FCI) sells the food grain for Public distribution system (PDS) consumption is known as Issue Price.

This may be less than, equal to or more than (MSP) Minimum Support Price and  depends upon the economic conditions in the country.

What is Fair and remunerative price (FRP) ?

It is the minimum price at which rate sugarcane is to be purchased by sugar mills from farmers.

The Financial Resource Planning (FRP)  is based on the recommendation of the Commission of Agricultural Costs & Prices (CACP).