COMMITTEE ON MINIMUM SUPPORT PRICE (MSP)

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Context

• Recently, the Centre constituted a committee on minimum support price (MSP) with former agriculture secretary Sanjay Agarwal as its chairman.

Background

• While announcing the repeal of three farm laws last year, Prime Minister Narendra Modi had promised to set up a committee to make the MSP system more effective and transparent.
• The three laws largely aimed at encouraging corporate investment in the agriculture sector. It envisaged giving farmers an alternative platform outside of the existing ‘mandis’ to sell their produce. It aimed to strengthen the framework for contract farming.
• The farmers had demanded the committee be formed, among other demands, to end their protests.

Committee formed finally

• The government finally formed a committee on Minimum Support Price (MSP), eight months after it promised to set up such a panel while withdrawing the three contentious farm laws.

The committee's role

• The committee will give its suggestions to make the farm advisory body Commission for Agricultural Costs & Prices (CACP) independent and also give its suggestions on zero-budget farming.
• Further, the panel will look at ways to strengthen the Agricultural Marketing System as per the changing requirements of the country to ensure higher value to the farmers through remunerative prices of their produce by taking advantage of the domestic and export opportunities.
• It will report on the export of agricultural products to increase the farmers' income.
• The committee will suggest measures to make minimum support price (MSP) available to farmers across the country.
• Besides MSP, the committee will look at ways to promote natural farming, crop diversification, and micro irrigation scheme and suggest strategies for making Krishi Vigyan Kendras (KVKs) and other Research and Development institutions as knowledge centres.

Read all about MSP: https://www.iasgyan.in/daily-current-affairs/minimum-support-price-msp-19

https://timesofinia.indiatimes.com/india/government-sets-up-msp-panel-but-is-mum-on-legal-guarantee/articleshow/92966631.cms