CONTENTS
- Minimum Support Price
- World Food Day
Minimum Support Price
Context:
The Union government has declared minimum support prices (MSP) for six rabi crops for the 2025-26 marketing season, notably increasing the MSP for wheat by ₹150 per quintal to ₹2,425, marking a 6.59% rise from the previous MSP.
Relevance:
GS-III: Agriculture (Agriculture Pricing), GS-II: Social Justice (Welfare Schemes)
Dimensions of the Article:
- What is Minimum Support Price (MSP)?
- Why is there a need for MSP?
- What are the issues related to MSP?
What is Minimum Support Price (MSP)?
- Minimum Support Price is the price at which government purchases crops from the farmers, whatever may be the price for the crops.
- MSPs have no statutory backing — a farmer cannot demand MSP as a matter of right.
- Commission for Agricultural Costs & Prices (CACP) in the Ministry of Agriculture recommends MSPs for 23 crops.
- CACP consider various factors while recommending the MSP for a commodity like cost of cultivation, supply and demand situation for the commodity; market price trends (domestic and global) and parity vis-à-vis other crops etc.
- MSP seeks to:
- Assured Value: To give guaranteed prices and assured market to the farmers and save them from the price fluctuations (National or International).
- Improving Productivity: By encouraging higher investment and adoption of modern technologies in agricultural activities.
- Consumer Interest: To safeguard the interests of consumers by making available supplies at reasonable prices.
While recommending MSPs, the CACP looks at the following factors:
- the demand and supply of a commodity;
- its cost of production;
- the market price trends (both domestic and international);
- inter-crop price parity;
- the terms of trade between agriculture and non-agriculture (that is, the ratio of prices of farm inputs and farm outputs);
- a minimum of 50 per cent as the margin over the cost of production; and
- the likely implications of an MSP on consumers of that product.
Crops covered
Crops covered by MSPs include:
- 7 types of cereals (paddy, wheat, maize, bajra, jowar, ragi and barley),
- 5 types of pulses (chana, arhar/tur, urad, moong and masur),
- 7 oilseeds (rapeseed-mustard, groundnut, soyabean, sunflower, sesamum, safflower, nigerseed),
- 4 commercial crops (cotton, sugarcane, copra, raw jute)
Why is there a need for MSP?
- The MSP is a minimum price guarantee that acts as a safety net or insurance for farmers when they sell particular crops.
- The guaranteed price and assured market are expected to encourage higher investment and in adoption of modern technologies in agricultural activities.
- With globalization resulting in freer trade in agricultural commodities, it is very important to protect farmers from the unwarranted fluctuation in prices.
What are the issues related to MSP?
- Low accessibility and awareness of the MSP regime: A survey highlighted that, 81% of the cultivators were aware of MSP fixed by the Government for different crops and out of them only 10% knew about MSP before the sowing season.
- Arrears in payments: More than 50% of the farmers receive their payments of MSP after one week.
- Poor marketing arrangements: Almost 67% of the farmers sell their produce at MSP rate through their own arrangement and 21% through brokers.
- According to NITI Aayog report on MSP, 21% of the farmers of the sample States expressed their satisfaction about MSP declared by the Government whereas 79% expressed their dissatisfaction due to various reasons. Although, majority of the farmers of the sample States were dissatisfied on MSP rates, still 94% of them desired that the MSP rates should be continued.
World Food Day
Context:
Recently, World Food Day was observed on 16th October focusing on the urgent need to eradicate hunger and build resilient global food systems.
Relevance:
Facts for Prelims
World Food Day 2024: Emphasizing the Right to Food for a Better Future
Overview
World Food Day 2024 celebrates an essential human right under the theme “Right to Food for a Better Life and a Better Future.” This day, commemorated every year on October 16th, marks the anniversary of the founding of the Food and Agriculture Organization (FAO) by the United Nations on October 16, 1945.
Historical Context and Global Recognition
- Inception of World Food Day: Established in 1979 during the FAO’s 20th General Conference, the day received formal endorsement from the UN General Assembly in 1984, signifying its global importance.
- Right to Food: Recognized as a fundamental human right in the Universal Declaration of Human Rights in 1948, the right to food is pivotal for ensuring that all individuals have access to sufficient, safe, and nutritious food to maintain a healthy and active life.
Global Sustainability and India’s Role
- WWF’s Living Planet Report: The report highlighted India’s food consumption patterns as a model of sustainability among G20 countries. Notably, it mentioned that if global populations adopted similar dietary patterns as India, the ecological footprint would be significantly reduced, requiring the resources of only 0.84 Earths by 2050 to sustain food production.
India’s Commitment to Enhancing Food Security
- Legislative and Policy Framework: India has instituted robust measures to secure food for its population, including:
- National Food Security Act, 2013: Aims to provide subsidized food grains to approximately two-thirds of India’s 1.2 billion population.
- Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY): A relief package that offers free food grains to the poor amid the ongoing economic challenges.
- PM POSHAN Scheme: Formerly known as Mid-Day Meal Scheme, it provides meals to school-age children to ensure they receive adequate nutrition.
- Antyodaya Anna Yojana: Targets the poorest of the poor by providing highly subsidized food.
- Rice Fortification Initiative: Aims to enhance the nutritional quality of rice distributed under various government schemes to combat malnutrition.
- Price Stabilization Fund (PSF): Established to control price volatility for staple crops and ensure affordability for consumers.
Conclusion
World Food Day 2024 not only commemorates the progress in the right to food but also underscores the ongoing challenges and the innovative solutions being implemented worldwide, particularly in India. The emphasis on sustainable consumption patterns and robust food security programs exemplifies the global and national commitments towards a nourished and sustainable future.
