GS SCORE- Centre Rules out MSP Law
The ongoing farmer protests in India have once again brought the issue of Minimum Support Price (MSP) to the forefront. As farmers take to the streets demanding legal guarantees for MSP, the government faces a delicate balancing act. What Is MSP? Minimum Support Price (MSP) is the price set by the government at which it directly purchases agricultural products from farmers if the open market prices fall below this threshold. The primary purpose of MSP is to protect farmers against drastic price fluctuations during market volatility. It ensures a safety net for farmers, especially during bumper production years. It covers 22 crops, including paddy, wheat, maize, arhar (pigeon pea), cotton, and mustard seeds and Fair and Remunerative Price for sugarcane. The MSP is calculated based on different cost components: A2 Cost: This includes actual paid-out expenses such as seeds, fertilizers, pesticides, labor, and other direct costs incurred during cultivation. A2+FL Cost: I...