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Most kharif crop prices rule above MSP as weather hits output
খবরে কেন?
Market price beats the government floor: the MSP body and mechanism GS Paper 3 expects you to explain
Weather-hit kharif output has lifted market prices above MSP for most crops.
Why it matters: asked in UPSC 2020; GS-3 core; factual, Prelims-type
What you need to know
2 মিনিট
Prices of most kharif crops are ruling above their Minimum Support Prices because weather has hurt production.
An El Nino-linked drought during the South-West Monsoon and untimely rain afterwards cut yields, which pushed market rates over the government's assured floor.
MSPs are recommended by the Commission for Agricultural Costs and Prices and approved by the Union Government.
সূত্র: Topper IAS editorial (PIB / The Hindu / Indian Express)
মূল তথ্য
Remember these
- MSP is the assured floor price at which the government is ready to buy crops from farmers.
- MSPs are recommended by the Commission for Agricultural Costs and Prices (CACP) and approved by the Union Government.
- Most kharif crop prices are ruling above MSP this season because weather hurt output.
- An El Nino-linked drought in the South-West Monsoon and untimely rain afterwards cut yields.
- Kharif crops are sown with the onset of the South-West Monsoon and harvested in autumn.
প্রিলিমস · মেইনস
How the exam will ask it
প্রিলিমস
- The Commission for Agricultural Costs and Prices recommends Minimum Support Prices to the Government of India.
- MSP acts as an assured floor price; when market rates rule above it, procurement at MSP becomes less necessary.
- El Nino is associated with weaker South-West Monsoon rainfall over India, which can reduce kharif yields.
মেইনস
GS Paper 3 (Agriculture/Economy): weather shocks such as El Nino-linked drought cut kharif output, lifting market prices above MSP, which shows MSP is a floor and not a ceiling. The CACP recommends and the Union Government approves MSPs, so policy must balance farmer income with food inflation. Way forward: better climate-resilient crops, crop insurance, buffer stock management and calibrated stock limits or imports to temper price spikes.
PYQ connection
A question UPSC has already asked on this
Consider the following statements:
- In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India.
- In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise.
Which of the statements given above is/are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
উত্তর দেখুন
উত্তর: D
Why this matters: today's issue is directly connected to a concept UPSC has already tested. Read the story with this question in mind.
Practise this PYQ →Quick recall
Answer before you reveal
Minimum Support Prices for kharif and rabi crops are recommended to the Government of India by the:
- Commission for Agricultural Costs and Prices
- NITI Aayog
- Food Corporation of India
- Agricultural and Processed Food Products Export Development Authority
উত্তর দেখুন
উত্তর: A — Correct: Commission for Agricultural Costs and Prices — CACP is the expert body that recommends MSPs; the Union Cabinet then approves them. • NITI Aayog — wrong: NITI Aayog is a policy think tank and does not recommend MSPs. • Food Corporation of India — wrong: FCI procures grain at MSP but does not recommend the price. • Agricultural and Processed Food Products Export Development Authority — wrong: APEDA promotes exports of agricultural products and has no role in recommending MSP.
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