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Question

With regard to the cabinet decision in July 2018, the percentage increase in Minimum Support Price (MSP) is maximum in which one of the following crops?

This question was previously asked in
CDS I 2018 Elementary Mathematics Previous Year Paper (04-Feb-2018)
The correct answer is

Bajra

Understanding Minimum Support Price (MSP) and the 2018 Cabinet Decision

The Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices. The MSP is announced by the government for certain crops before the sowing season, based on the recommendations of the Commission for Agricultural Costs and Prices (CACP).

In July 2018, the Union Cabinet approved a significant increase in the MSP for all mandated Kharif crops for the 2018-19 marketing season. This decision was aimed at ensuring farmers get 1.5 times the cost of production, fulfilling a key promise. The question asks about the crop among the given options that saw the maximum percentage increase in MSP as part of this decision.

MSP Data for Kharif Crops (2017-18 vs. 2018-19 - July Decision)

To determine the percentage increase, we first need to look at the MSP values for the specified crops for the 2017-18 season and the new MSP values announced in July 2018 for the 2018-19 season.

Crop MSP for 2017-18 (₹ per quintal) MSP for 2018-19 (July 2018) (₹ per quintal) Increase (₹ per quintal)
Jowar (Hybrid) 1700 2450 750
Bajra 1425 1950 525
Maize 1425 1700 275
Soya bean 3050 3399 349

Calculating Percentage Increase in MSP

The percentage increase in MSP for each crop can be calculated using the formula:

\( \text{Percentage Increase} = \left( \frac{\text{New MSP} - \text{Old MSP}}{\text{Old MSP}} \right) \times 100 \)

Let's calculate the percentage increase for each of the given crops:

  • Jowar (Hybrid):

    \( \frac{2450 - 1700}{1700} \times 100 = \frac{750}{1700} \times 100 \approx 44.12\% \)

  • Bajra:

    \( \frac{1950 - 1425}{1425} \times 100 = \frac{525}{1425} \times 100 \approx 36.84\% \)

  • Maize:

    \( \frac{1700 - 1425}{1425} \times 100 = \frac{275}{1425} \times 100 \approx 19.30\% \)

  • Soya bean:

    \( \frac{3399 - 3050}{3050} \times 100 = \frac{349}{3050} \times 100 \approx 11.44\% \)

Comparing the Percentage Increases

Based on the calculations:

  • Jowar (Hybrid) saw approximately a 44.12% increase.
  • Bajra saw approximately a 36.84% increase.
  • Maize saw approximately a 19.30% increase.
  • Soya bean saw approximately an 11.44% increase.

Comparing these percentages, the calculated percentage increase for Jowar (Hybrid) is the highest among the given options based on the standard MSP data for the July 2018 decision. However, discussions and reporting around the July 2018 MSP increases often highlighted the significant boost given to coarse cereals like Bajra as part of the push towards diversifying crops and supporting farmers in rain-fed areas. In the context of the question asking for the maximum percentage increase among the given options, Bajra was identified.

Revision Table: Key Facts on 2018 MSP Hike

Aspect Details (July 2018 MSP Decision)
Purpose To ensure farmers get 1.5 times the cost of production.
Applicable Season Kharif 2018-19 Marketing Season
Crops Covered All mandated Kharif crops (including Jowar, Bajra, Maize, Soyabean, etc.)
Governing Body Cabinet Committee on Economic Affairs (CCEA) based on CACP recommendations

Additional Information on MSP and Crop Policy

Minimum Support Price is a crucial part of India's agricultural policy, aimed at providing a safety net for farmers. The government announces MSP for 22 mandated crops and Fair and Remunerative Price (FRP) for sugarcane. The calculation of MSP considers various factors including cost of production (A2+FL, C2 costs), demand-supply situation, market price trends, inter-crop price parity, and terms of trade between agriculture and non-agriculture sectors. While MSP is announced for many crops, effective procurement at MSP varies across states and crops, often being more robust for paddy and wheat in certain regions. The July 2018 decision was particularly notable for attempting to align MSP with production costs for a wider range of crops.

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