New Delhi: Minimum Support Price (MSP) procurement has been aided by the Central and State Agencies under various Government schemes. Also, the overall market results in private procurement are always on or above the MSP for various notified crops. Therefore, an accurate number of farmers benefiting from the MSP declaration is difficult to assess. However, the farmers benefitted from Government procurement at MSP is as under:-
|No of Farmers||1,71,50,873||2,04,63,590||2,10,07,563|
The government of India announces Minimum Support Prices (MSP) for 22 major agricultural commodities of Fair Average Quality (FAQ) each year in both the Crop seasons after taking into account the recommendations of the Commission for Agricultural Costs and Prices (CACP). The government extended the remunerative price to farmers too, through its various intervention schemes.
For making effective procurement by Government agencies at MSP and providing maximum benefits of MSP to the farmers, procurement centers are opened by respective State Government Agencies and Central Nodal Agencies like NAFED, FCI, etc. after taking into account the production, marketable surplus, convenience of farmers and availability of other logistics/infrastructure such as storage and transportation, etc. a large number of the purchase centers in addition to the existing Mandis and depots/godowns are also established at key points for the convenience of farmers to ensure procurement at MSP.
Moreover, if the farmers get favorable terms to sell their produce or a better price than MSP, they are free to sell their produce anywhere other than the Govt agencies.
The aforesaid information was given by Union Minister for Agriculture and Farmers Welfare Shri Narendra Singh Tomar in written during Lok Sabha on 3rd August 2021.