CURRENT AFFAIRS

Detailed explanation-1: -Context: The Delhi government has decided to introduce Minimum Support Price (MSP) for farmers based on the report of the MS Swaminathan Commission.

Detailed explanation-2: -As India is an agricultural country, protecting our farmers has to be on the top list of the government. This is why, to protect farmers from such uncertainties, the Minimum Support Price or MSP was introduced by the government of India in the year 1966-67.

Detailed explanation-3: -Crops under MSP: The Commission for Agricultural Costs & Prices (CACP) recommends MSPs for 22 mandated crops and fair and remunerative price (FRP) for sugarcane. CACP is an attached office of the Ministry of Agriculture and Farmers Welfare.

Detailed explanation-4: -The Cabinet Committee on Economic Affairs chaired by Hon’ble Prime Minister Shri Narendra Modi has approved the increase in the Minimum Support Prices (MSP) for all mandated Rabi Crops for Marketing Season 2023-24.

Detailed explanation-5: -The Swaminathan Commission Report states that the government should raise the MSP to at least 50% more than the weighted average cost of production. It is also known as the C2+ 50% formula. It includes the imputed cost of capital and the rent on the land (called ‘C2’) to give farmers 50% returns.