The Cabinet Committee on Economic Affairs (CCEA) has set _____ per quintal minimum support price (MSP) for paddy with A grade for marketing season 2020 - 2021.
Rs. 1,888
Understanding Minimum Support Price (MSP)
The Minimum Support Price (MSP) is a form of market intervention by the Government of India to protect agricultural producers against sharp falls in farm prices. The minimum support price is announced by the Government at the beginning of the sowing season for certain crops on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP).
The primary objective of setting a minimum support price is to ensure that farmers receive a guaranteed price for their produce, thereby encouraging investment in agriculture and protecting them from market volatility. It acts as a safety net for farmers.
Cabinet Committee on Economic Affairs (CCEA) and MSP
The final decision on setting the minimum support price for various crops is taken by the Cabinet Committee on Economic Affairs (CCEA), which is chaired by the Prime Minister of India. The CCEA considers the recommendations of the CACP, along with other factors like the cost of production, demand and supply conditions, market price trends, inter-crop price parity, terms of trade between agriculture and non-agriculture sectors, and likely implications on consumers.
Minimum Support Price for Paddy (A Grade) 2020-2021
For the marketing season 2020-2021, the Cabinet Committee on Economic Affairs (CCEA) approved the Minimum Support Price (MSP) for paddy and other Kharif crops. The MSP for paddy is fixed for two varieties: common grade and A grade.
The MSP announced for paddy (A grade) for the marketing season 2020-2021 was set at a specific rate per quintal. This rate was higher than the MSP for common grade paddy for the same season, reflecting the difference in quality.
Let's look at the MSP values for paddy for the 2020-2021 season:
| Crop | Variety | Minimum Support Price (2020-2021 per quintal) |
|---|---|---|
| Paddy | Common | Rs. 1,868 |
| Paddy | A Grade | Rs. 1,888 |
Based on the decision by the CCEA, the minimum support price for paddy with A grade for the marketing season 2020-2021 was fixed at Rs. 1,888 per quintal.
The determination of the minimum support price plays a crucial role in the agricultural economy, impacting farmers' income and food security.
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