This aligns with other evidence indicating that officially procured crop output accounts for around 11 per cent of total crop output and seven per cent of total agricultural output. Announced at the beginning of the sowing season for certain crops, MSP is determined by the Commission for Agricultural Costs and Prices (CACP). The Committee recommended that the MSP and procurement support policy, designed for cereals during the Green Revolution time, be revisited. The procurement of crops at a declared MSP can be the prerogative of the States as per their specific need. However, expanding MSP through procurement to all crops involves hefty fiscal costs –– nearly one-third of MSP to back MSP through procurement.

Source: The Hindu February 14, 2024 20:27 UTC