Minimum Support Price (MSP) – Bhavantar Scheme & CACP Role for UPSC

Context

Madhya Pradesh plans to extend Bhavantar Yojana to mustard farmers (earlier for soybean). Expected to benefit ~80 lakh farmers.

Bhavantar Yojana

  • Price-difference payment scheme
  • If market price < MSP
  • State pays difference to farmers

MSP (Minimum Support Price)

  • Government-declared minimum guaranteed price
  • Protects farmers from price crash

Who Recommends & Who Decides MSP?

Crops under MSP

Cereals: Paddy, Jowar, Bajra, Maize, Ragi, Wheat, Barley
Pulses: Gram, Tur, Moong, Urad, Masur
Oilseeds: Groundnut, Rapeseed–Mustard, Soybean, Sunflower, Sesamum, Nigerseed, Safflower
Commercial Crops: Cotton, Copra, Jute, Sugarcane

Previous Year Question (2018)

MSP announced for which crops?
Correct Answer: B

PYQ – 2018, Ans – B
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Minimum Support Price (MSP) – Bhavantar Scheme & CACP Role for UPSC

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