Now, it’s PM’s word on kharif MSP

Now, it’s PM’s word on kharif MSP

News:

1. Prime Minister Narendra Modi’s reassurance to farmers for Kharif crops.

Important facts:

2.Mr Modi, gave assurance to farmer’s that government will approve Minimum Support prices(MSP) at 150% of input costs for kharif crops.

3.Modi’s assurance comes as farmer’s group has started agitating on the lack of announcement on MSP rates.

4.He also assured farmers that the Fair and Remunerative Price (FRP) for sugar cane for the 2018-19 season would be announced soon.

5.The FRP will also incentivise farmers whose crops have a sugar recovery rate higher than 9.5%.

6.The MSPs act a price signal for farmers and usually announced in early June, when sowing begins.

7.With growing sugar mill’s arrears to cane farmers, the government has approved following measures:

• Production subsidy,
• Buffer stock,
• Minimum retail price
• Hike in import duties,
• Steps to increase ethanol production from cane.

8.The NITI Aayog’s proposal to ensure MSP:

• Make states responsible for procurement, storage and disposal of crops, with partial financial support from the Centre.
• Pay farmers the price difference between market rates and MSP without any crop procurement
• Involve procurement by private agencies and traders at MSP rates.