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20-475: The minimum support price ( MSP ) is the minimum price for select crops raised in kharif and rabi seasons that the Government of India considers as remunerative for farmers and hence deserves support. This is different from procurement price and issue price. It is generally announced before the sowing/planting season. It is approved by the government and aims to safeguard the farmer to a minimum profit for
40-645: A distribution system to supply food grains at subsidised rates. This body was reconstituted into the Commission for Agricultural Costs and Prices (CACP) in March 1985 with a new and broader terms of reference. A number of other institutions are involved in the process of implementing the MSP, including central organisation along with their state level bodies. This includes the Food Corporation of India (FCI) and
60-413: A flooded field during the growth period. In Kharif crop following fruits are produced: List as follows: Farmer Income Protection Scheme (PM AASHA) The Prime Minister's Farmer Income Protection Scheme ( Hindi : प्रधानमंत्री अन्नदाता आय संरक्षण अभियान , romanized : Pradhan Mantri Annadata Aay Sanrakshan Abhiyan ), also known as PM AASHA ( पीएम-आशा ) is an umbrella scheme of
80-576: A government price policy for food grains. One of the main goals was to increase the productivity of agricultural land. High yield varieties, better equipment and fertilizers were among the strategies adopted. Price policy support aimed at increasing land productivity was part of this. This led to the setting up of the Agricultural Price Commission (APC) in 1965. The Commission introduced a number of price policies including procurement at pre-decided prices, minimum support prices and
100-650: A number of different ways MSP is calculated and it is not always clear what is intended in policy documents such as 2018 Union budget of India . A total of 23 commodities are covered by MSP mechanism: including FRP for Sugarcane. On a larger scale, trade policy is disconnected from MSP. Disparity among states Skewed Procurement Ecological harm Fiscal burden Inflation WTO issue Kharif Kharif crops , also known as monsoon crops or autumn crops , are domesticated plants that are cultivated and harvested in India , Pakistan and Bangladesh during
120-453: Is highly skewed in the distribution of its agricultural resources, and accordingly, select regions have benefitted from a MSP. As per 2013 Ministry of Statistics data only 23% of farmers in the rural agricultural households in India are aware of MSP of crops. Awareness varies from 0 to 50% according to state. Even fewer are aware of an procurement agency buying at MSP. In 2018-19, a quarter of
140-663: The Arabic via Classical Persian . These came to be used in India with the ascent of the Mughal Empire in the Indian subcontinent and have been widely used ever since. Kharif means " autumn " in Arabic. The sowing happens during the monsoon and reaping happens close to autumn in the Indian subcontinent; this proximity to the autumn reap season is called the kharif period. The Kharif season varies by crop and region, starting at
160-593: The Indian subcontinent 's monsoon season , which lasts from June to November depending on the area. Monsoon rains may begin as early as May in some parts of the Indian subcontinent, and crops are generally harvested from the third week of September to October. Rice, maize, and cotton are some of the major Kharif crops in India. Unlike the Rabi crops , which are grown in the winter, the kharif crops require good rainfall. The words Kharif and rabi both have their origins in
180-590: The National Agricultural Co-operative Marketing Federation (NAFED). These changes resulted in increased production of grains such as wheat and rice resulting in grain shortages to grain surpluses. At the same time the implementation of these price policies was biased and resulted in a decreased focus on diversification, creating shortages in pulses and edible oils. The severity of these adverse impacts vary according to state, region, commodity, and farmer. India
200-430: The rabi crops , which are cultivated during the dry season. Rice is the most important Kharif crop of India. It is grown in rain-fed areas with hot and humid climates, especially the eastern and southern parts of India. Rice requires a temperature of 16–20 °C (61–68 °F) during the growing season and 18–32 °C (64–90 °F) during ripening. It needs rainfall from 150–200 centimetres (59–79 in) and needs
220-517: The Government may decide from time to time, with a view to evolving a balanced and integrated price structure in the perspective of the overall needs of the economy and with due regard to the interests of the producer and the consumer. According to the terms of reference, the Commission has been advised to keep a few points in mind when recommending the price policy. This includes incentivising
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#1732791863801240-456: The MSP at the state level. While providing a support price to farmers, MSP also supports the public distribution system which provides subsided food. In the 1960s, India saw food shortages such as the Bihar famine of 1966–1967 , resulting from droughts and war. During the prime years of the green revolution in India in that decade, a number of agriculture policy strategies were mooted including
260-470: The MSPs. This could result in large savings for the government as it would not have to procure and store the crops. While recommending price policy of various commodities under its mandate, the Commission for Agricultural Costs and Prices (CACP) keeps in mind the various Terms of Reference (ToR) given to it in 2009. To advise on the price policy of paddy/rice, wheat, jowar, [...] and such other commodities as
280-718: The earliest in May and ending at the latest in January. In India, the season is popularly considered to start in June and end in October. Kharif crops are usually sown at the beginning of the first rains during the advent of the south-west monsoon season, and they are harvested at the end of monsoon season (October–November). Monsoon sowing dates vary, occurring toward the end of May in the southern state of Kerala and reaching July in some north Indian states. In other regions like Maharashtra ,
300-505: The existence of an MSP is poor at 23%, while awareness of MSP procurement agencies is also poor with only about 20–25% of wheat and paddy produce being sold at MSP. The Indian government sets the price for about two dozen commodities twice a year. MSP is fixed on the recommendations of the Commission for Agricultural Costs and Prices (CACP) , an apex advisory body for pricing policy under the Ministry of Agriculture . CACP in turn recommends
320-493: The farmer for production as per national requirements, allowing for the rational use of resources, the impact on wages, cost of living and product competitiveness. The Commission can also recommend non-price measures and ways to make the price policy implementation effective. However, sometimes there are large variations between what is recommended by the CACP, and what is declared by the government due to selective politics. There are
340-421: The harvest while at the same time increasing food security in the country. MSP was initially an incentive for farmers to adopt technology with an aim of increasing the productivity of agricultural land in the 1960s, however in the 2000s it is seen as a market intervention and farmer income scheme. The effectiveness of such a price policy has varied widely between states and commodities. Awareness among farmers of
360-444: The pricing according to a diverse range of factors including national requirements, available resources, farmer wages, cost of living and product competitiveness. However, not all recommendations of CACP are adopted, sometimes, there can be significant difference with the price approved by the government. Food Corporation of India (FCI) and the National Agricultural Co-operative Marketing Federation (NAFED) are involved in implementing
380-585: The total paddy sales and only 20% of wheat were sold at MSP. Attempts to ensure MSP is fulfilled have included the decades-old Price Support Scheme (PSS), the 2015 Decentralized Procurement Scheme (DCP), and more recently the 2018 umbrella campaign, the Farmer Income Protection Scheme (PM AASHA) . Under AASHA, a price deficiency payment (PDP) system has been launched under which the government will partly compensate farmers for those who have had to sell their crops at market prices less than
400-412: The west coast of India, and Pakistan, which receive rains in June, Kharif crops are sown in May, June and July. In Bangladesh, Kharif crops are usually sown with the beginning of the first rains in June. These crops are dependent on the quantity of rainwater as well as its timing. Too much, too little, or rain at the wrong time may lay waste to the whole year's efforts. Kharif crops stand in contrast to
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