CCEA approves hike in MSP for Copra for 2018 season

The Cabinet Committee on Economic Affairs (CCEA) has approved increase in Minimum Support Price (MSP) for Fair Average Quality (FAQ) of “Milling Copra” for 2018 season. The approval was based on recommendations of Commission for Agricultural Costs and Prices (CACP).

Key Facts

The increased in MSP of Copra is expected to ensure appropriate minimum prices to farmers and step up investment in Coconut cultivation and thereby production and productivity in country.
The National Agricultural Cooperative Marketing Federation of India Limited (NAFED) and National Cooperative Consumer Federation of India Limited (NCCF) will continue to act as Central Nodal Agencies to undertake price support operations at MSP in the Coconut growing states.

Minimum Support Price (MSP)

MSP is form of agricultural market intervention undertaken by Central Government in order to insure agricultural producers are protected against any sharp fall in farm prices. It is announced for certain crops by Government prior to the sowing season. Its purpose is to incentivize cultivators to adopt modern technology and raise productivity and overall production in line with the emerging demand patterns in the country. The prices are decided by CCEA on the basis of recommendations of the Commission for Agricultural Costs and Prices (CACP).

Commission for Agricultural Costs and Prices (CACP)

CACP is an expert body which recommend minimum support prices (MSPs) to Government (CCEA) by taking into account cost of production, trends in domestic and international prices. It is an attached office of the Ministry of Agriculture and Farmers Welfare. It came into existence in January 1965.
Currently, CCEA comprises Chairman, Member Secretary, one Member (Official) and two Members (Non-Official). The non-official members are representatives from farming community and usually have active association with farming community.

Month: Current Affairs - February, 2018