To boost production of pulses during the kharif season, the Centre recently announced a bonus of Rs. 200 a quintal on the revised minimum support price for tur, moong and urad dal (lentils) for the marketing season of 2015-16.
- The minimum support price for paddy was increased by Rs. 50 a quintal for the kharif marketing season of the financial year.
Minimum Support Price (MSP):
- The Minimum Support Price (MSP) Scheme is a scheme of the Government of India (GOI) to safeguard the interests of the farmers.
- Government fixes MSPs of various kharif and rabi crops every year on the recommendations of Commission for Agricultural Costs & Prices (CACP.
- Under this Scheme the government declares the minimum support Prices of various agricultural produces and assures the farmers that their agricultural produce will be purchased at the MSP, thereby preventing its distress sale.
- Procurement under MSP is undertaken by the designated Central and State Government agencies and Cooperatives.
- MSP is in the nature of minimum price offered by the Government. Producers have the option to sell their produce to Government agencies or in the open market as is advantageous to them.
Sources: The Hindu, PIB.