Minimum Support Price Flashcards
What is the purpose of the Minimum Support Price (MSP) list for karif and rabi crops?
To ensure farmers receive a fair price for their produce and to protect them from price fluctuations.
What does MSP stand for?
Minimum Support Price.
Which crops are included in the MSP list for karif season?
Rice, maize, jowar, bajra, ragi, arhar, urad, moong, groundnut, soybean, sunflower, sesamum, nigerseed, cotton, and sugarcane.
Which crops are included in the MSP list for rabi season?
Wheat, barley, gram (chana), masur (lentil), rapeseed-mustard, safflower, and jute.
What is the main authority responsible for fixing MSP for various crops?
The Commission for Agricultural Costs and Prices (CACP).
True or False: MSP is legally binding on both the central and state governments.
True.
What is the mechanism through which MSP helps in stabilizing market prices?
By providing a floor price for farmers, it prevents the market prices from falling below a certain level.
What is the role of the Food Corporation of India (FCI) in the MSP system?
To procure food grains at MSP to ensure price support operations for farmers.
What is the significance of MSP in the context of agricultural distress?
MSP acts as a safety net for farmers by guaranteeing them a minimum price for their crops, reducing the impact of price fluctuations.
What is the MSP fixed based on for different crops?
Recommendations of the CACP after considering various factors.
What is the impact of MSP on the Indian economy?
MSP ensures food security, price stability, and income support for farmers, contributing to overall economic growth.
How does MSP influence farmers’ decisions regarding crop cultivation?
Farmers tend to grow crops for which MSP is announced, leading to potential market distortions.
What is the main criticism of the MSP system?
It distorts market prices, leads to overproduction of certain crops, and increases government expenditure on procurement.
What role does MSP play in the context of agricultural reforms in India?
MSP has been a focal point of discussions on agricultural reforms, with calls for reforms to ensure better price discovery mechanisms for farmers.
How does MSP impact consumer prices of agricultural produce?
MSP can influence consumer prices indirectly by affecting the supply and demand dynamics in the market.
What are the challenges faced by the MSP system in India?
Issues of implementation, procurement capacity, price distortions, and the need for periodic revision of MSP rates.
What is the relationship between MSP and the concept of fair and remunerative price (FRP) in sugarcane cultivation?
MSP applies to various crops, while FRP specifically pertains to sugarcane, ensuring a minimum price for sugarcane farmers.
How does MSP contribute to farmers’ income security?
By providing a guaranteed minimum price for their crops, farmers have a safety net against market price fluctuations, ensuring income security.
What is the significance of MSP in the context of government procurement of food grains?
MSP acts as a benchmark price for government procurement of food grains, ensuring price support for farmers and food security for the country.
What are the potential benefits of a well-functioning MSP system?
Stabilizing market prices, ensuring fair returns to farmers, enhancing food security, and reducing income disparities in the agricultural sector.
What are the implications of MSP on agricultural trade policies?
MSP can impact trade policies by influencing domestic production, consumption, and export-import dynamics of agricultural commodities.
What is the primary objective of the MSP system in India?
To protect the interests of farmers by ensuring a minimum support price for their crops, thereby promoting agricultural sustainability and economic growth.
