Government constitutes committee to examine the methodological issues in fixing Minimum Support Prices

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A Committee under the Chairmanship of Director, National Centre for Agricultural Economics & Policy Research, has been constituted by the government of India to examine the methodological issues in fixing Minimum Support Prices. Minimum Support Price (MSP) Scheme is to safeguard the interests of the farmers where government of India fixes the minimum support Prices of various agricultural produces and assures the farmers that their agricultural produce will be purchased at the MSP only thereby preventing its distress sale. The Food Corporation of India (FCI) acts as the Nodal Agency of the GOI for purchasing while Commission for Agricultural Costs and Prices under the Agriculture ministry recommends the MSP.

The "terms of reference" of the Committee are to examine :

  • the existing mandate of the Commission for Agricultural Costs and Prices and suggest whether – by way of a measure of response to the rapidly changing external environment arising in the wake of liberalization, privatization and globalization – there is need to reposition the Commission in terms of its mandate and remit.
  • the existing cost concepts for the purpose of fixing minimum support prices and suggest various factors including cost of transportation, marketing, processing, storage etc. to determine MSP.
  • Committee may also analyse the appropriateness of existing methods followed in imputing the value (i) family labour; (ii) rental value of land; (iii) interest on capital; (iv) depreciation on fixed items such as tractors, bullocks etc. and recommend measures for improvement so as to make them more realistic.
  • the existing structure of tariff, taxes, credit, market etc. and to suggest various measures to make it most competitive and remunerative to the farmers in the wake of trade liberalization and globalization and also to encourage diversified agricultural growth.
  • any other related and relevant matters that are important for improving the system.

The National Centre for Agricultural Economics and Policy Research (NCAP) :
a premier agricultural economics research institution in India established by Indian Council of Agricultural Research (ICAR) in 1991, with a view to strengthen agricultural economics research through integration of economics input in planning, designing, and evaluation of agricultural research programs and enhancing the competence in agricultural policy analysis within the National Agricultural Research System.

  • It undertakes and sponsors research in agricultural economics and policy analysis in technology policy, sustainable agriculture, market and trade, institutional change and growth and modeling in agriculture.
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