02 June 2016 Current Affairs: The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Narendra Modi on 1 June 2016 approved for Minimum Support Prices (MSPs) for Kharif Crops of 2016-17 season.
The prices will come into effect from effective from 1 October 2016. The higher MSPs would increase investment and production through assured remunerative prices to farmers.
The approved MSP is based on recommendations of Commission for Agricultural Costs and Prices (CACP) which takes into account the cost of production, overall demand-supply among others.
Above the recommendations of the CACP, the CCEA decided to give a bonus of 425 rupees per quintal for Kharif pulses like Arhar (Tur), Urad and Moong, a bonus of 200 rupees per quintal for Sesamum and a bonus of 100 rupees per quintal for kharif oilseeds like Groundnut-in-shell, Sunflowerseed, Soyabean, and Nigerseed.
This is expected to give a strong price signal to farmers to increase acreage and invest for increase in productivity of pulses and oilseeds.
Commission for Agricultural Costs and Prices (CACP) : It is an attached office of the Union Ministry of Agriculture and Farmers Welfare which came into existence in January 1965. It is mandated to recommend minimum support prices (MSPs) to incentivize the cultivators to adopt modern technology, and raise productivity and overall grain production in line with the emerging demand patterns in India.CACP submits its recommendations to the government in the form of Price Policy Reports every year, separately for five groups of commodities namely Kharif crops, Rabi crops, Sugarcane, Raw Jute and Copra.