Government announces minimum support prices (MSPs) for 22 mandated crops and fair and remunerative price (FRP) for sugarcane. Minimum support price is decided by the government on the basis of recommendations of the Commission for Agricultural Costs & Prices (CACP), after considering the views of State Governments and Central Ministries/Departments concerned and other relevant factors.
While recommending Minimum Support price CACP considers important factors like cost of production, overall demand-supply conditions, domestic and international prices, inter-crop price parity, terms of trade between agricultural and non-agricultural sectors, the likely effect on the rest of the economy, besides ensuring rational utilization of land, water and other production resources and a minimum of 50 per cent as the margin over cost of production.
Mandated crops under Minimum Support Price is decided by
Mandated crops that come under Minimum support price are:
- 14 crops of the kharif season – paddy, jowar, bajra, maize, ragi, arhar, moong, urad, groundnut-in-shell, soyabean, sunflower, sesamum, nigerseed and cotton
- 6 rabi crops are wheat, barley, gram, masur(lentil), rapeseed/mustard and safflower
- Two other commercial crops are jute and copra.
In addition, the MSPs of toria and de-husked coconut are fixed on the basis of the MSPs of rapeseed/mustard and copra, respectively.
Fair and Remunerative Prices for sugarcane
The Federal/Central Government announces Fair and Remunerative Prices which are determined on the recommendation of the Commission for Agricultural Costs and Prices (CACP) and are announced by the Cabinet Committee on Economic Affairs, that is chaired by the Prime Minister.
State Advised Prices
The State Advised Prices (SAP) are announced by key sugarcane producing states which are generally higher than FRP.
Minimum support price is decided by the government.
MSP rates are highly dynamic current rates can be seen here Link
Seed classes and importance of their tag colors are here Link