Minimum Support Price (MSP) : Recently, the Cabinet Committee on Economic Affairs (CCEA) approved an increase in the Minimum Support Price (MSP) for 14 major Kharif crops for the 2025–26 marketing season.
o This move aims to ensure remunerative returns to farmers and upholds the government’s commitment to maintaining MSP at 1.5 times the cost of production.
o Introduced during the Green Revolution in 1966-67 as part of agricultural reforms.
o Acts as a safety net to protect farmers from financial losses and helps maintain food security.
o Announced twice a year, before the Kharif (monsoon) and Rabi (winter) sowing seasons.
o The Commission for Agricultural Costs and Prices (CACP) recommends MSP, which is then approved by the Cabinet Committee on Economic Affairs (CCEA).
o Provides assured prices, motivating farmers to produce staple crops and support food security.
o Acts as a buffer against price fluctuations, especially during the harvest season.
o Supports a strong agricultural sector, uplifting rural livelihoods and boosting the overall economy.
o Protects farmers from being compelled to sell their produce at unfair prices to traders.
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