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State Governments Alerted to Ensure MSP to Farmers

14/03./2012, The Government has raised the MSPs for major agricultural commodities in 2011-12 ranging from Rs.80 per quintal for paddy (Common & Grade ‘A’) to Rs. 700 per quintal each for Gram and Safflower.

The Government ensures MSP through procurement operations undertaken by the Central, State and cooperative agencies in the states.

State governments have been alerted from time to time to make adequate arrangements to ensure MSP to farmers.

The Government fixes the Minimum Support Prices (MSPs) of various crops on the recommendations of the Commission for Agricultural Costs & Prices (CACP), the views of concerned State Governments and Central Ministries/Departments. While formulating its recommendations on price policy, CACP considers a number of important factors which include, interalia, cost of production, changes in input prices, trends in market prices, demand and supply situation, effect on general price level, effect on cost of living etc.

This information was given by Shri Harish Rawat, Minister of State for Agriculture and Food Processing Industries in written reply to a question in the Lok Sabha today.