Explanation:

Minimum Support Price (MSP)

• It’s a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.
• They are announced by the Government of India at the beginning of the owing season for certain crops on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP).
• CACP takes into account the cost of production, changes in input prices, input-output price parity, trends in market prices, demand and supply, inter-crop price parity, effect on industrial cost structure, effect on cost of living, effect on general price level, international price situation, parity between prices paid and prices received by the farmers and effect on issue prices and implications for subsidy while fixing the MSP.
• Food Corporation of India (FCI) is the designated central nodal agency for price support operations for cereals, pulses and oilseeds.
• Cotton Corporation of India (CCI) is the central nodal agency for undertaking price support operations for cotton.
• Market Intervention Scheme (MIS), implemented on the request of State Governments for procurement of perishable and horticultural commodities in the event of fall in market prices.

• Government announces minimum support prices (MSPs) for 22 mandated crops and fair and remunerative price (FRP) for sugarcane. The mandated crops are 14 crops of the kharif season, 6 rabi crops and two other commercial crops. In addition, the MSPs of toria and de-husked coconut are fixed on the basis of the MSPs of rapeseed/mustard and copra, respectively. The list of crops are as follows.

• Cereals (7) - paddy, wheat, barley, jowar, bajra, maize and ragi

• Pulses (5) - gram, arhar/tur, moong, urad and lentil
• Oilseeds (8) - groundnut, rapeseed/mustard, toria, soyabean, sunflower seed, sesamum, safflower seed and nigerseed
• Raw cotton
• Raw jute
• Copra
• De-husked coconut
• Sugarcane (Fair and remunerative price)
• Virginia flu cured (VFC) tobacco