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Friends, have you also searched about the Full Form of MSP, what is the meaning of MSP, what is MSP full form and what is MSP, etc And you are disappointed because not getting a satisfying answer so you have come to the right place to know the basics about what is MSP bill, MSP meaning in English, what is MSP means and how MSP is calculated, etc.
Friends if you read the newspaper or watch the news, then you often get to see and hear the name of MSP then the idea comes to your mind what is MSP and what is MSP Full Form. Today I will make you aware of all the meaning of MSP so stay till the end of the article.
MSP Full Form | What Is The Full Form Of MSP
MSP Full Form
The full form of MSP is “Minimum Support Price“.
What Is MSP?
A minimum Support Price is given to the farmers by the Government of India for their crops so that the farmers can sell their crops at the right price.
Let us understand with an example if the production of a crop increases in a year and the demand remains the same or the demand does not increase as much as the crop has been produced, then what will happen to the crop price?
The rate of the crop will come down, and then farmers will suffer more. Even their cost will not be able to come out. That’s why government brings the concept of minimum support price so that the farmers can sell their crops at the right price.
What is the meaning of MSP?
“MSP” acts as a kind of Brahmastra for the farmers, no middleman trader can buy that crop below the MSP price.
It is a matter of great misfortune that only and only 6% of the people in India can take advantage of MSP. It is prominent among the people of Punjab and Haryana.
Who decides the MSP?
CACP (Commission for Agriculture Cost and Price) prepares the MSP. It decides how much MSP should be of any grain.
For example, if there is wheat. How much should be the MSP? It should be ₹1900 per quintal or ₹ 2000 per quintal or ₹ 2500 per quintal. All this is decided by the CACP and given to the government and on its recommendation, the government MSP applies.
Presently MSP is applicable on about 26 crops which include cereals, pulses, oilseeds, etc. The number of crops keeps on increasing or decreasing.
How MSP Is Calculated?
Many demands are seen to prepare MSP such as manual labour, land revenue, animal labour, land rent, interest on fixed capital, machine labour, etc. After looking at so many things, CACP prepares MSP.
On the recommendation of this, the Government of India implements the MSP.
What Is The Problem In Preparing MSP?
There are many problems faced in the preparation of MSP such as
- Variation in cost
- Variation in soil quality
- Variety of water features
- Variation in Climate
- Diversity in labour
What Are The Benefits To Farmers From MSP?
Farmers can benefit a lot from MSP. If any reason there is a fall in the prices of the produce crop, then they will go to the APMC mandi (Agricultural Produce Market Committee) whichever is the MSP of that crop and sell their crop in the APMC mandi.
The government will store crops within itself because the government also has to provide wheat to the people living below the poverty line. This eliminates the possibility of loss to the farmers.
Why Are Farmers Agitating Against MSP?
New MSP Bills have been passed which have been approved by the signature of the Lok Sabha, Rajya Sabha, and the President, so the farmers are feeling the following things, due to which they are agitating.
1. MSP will expire.
2. The market will be closed (APMC).
3. Difficulties in Contract Farming.
4. Ration shop will be closed.
5. Hoarding and black marketing will increase.
What is Contract Farming?
Contract farming means that any big company needs raw materials, and for this, it contracts with direct farmers, she says you plant this crop, and we will give you so much money.
In this way, there is an agreement between the company and the farmer, but if later the company said that the crop is not right, it is weak and the company left after saying this? The farmers are very afraid of this.
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