About MSP

• Minimum Support Price (MSP) is a form of market intervention by the Government to insure agricultural producers against any sharp fall in farm prices. 
• MSP is the price at which the government procures certain crops from farmers to ensure support price to farmers and affordable prices to the consumer. 
• The minimum support prices are announced by the Government at the beginning of the sowing season for certain crops on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP). 

About CACP

• The Commission for Agricultural Costs & Prices is an attached office of the Ministry of Agriculture and Farmers Welfare. It came into existence in 1965.
• It is mandated to recommend MSPs to incentivize the cultivators to adopt modern technology and raise productivity and overall grain production in line with the emerging demand patterns in the country.

How many crops does the minimum support price cover?

• As of now, CACP recommends MSPs of 23 commodities, which comprise 7 cereals (paddy, wheat, maize, sorghum, pearl millet, barley and ragi), 5 pulses (gram, tur, moong, urad, lentil), 7 oilseeds (groundnut, rapeseed-mustard, soyabean, seasmum, sunflower, safflower, niger seed), and 4 commercial crops (copra, sugarcane, cotton and raw jute).
• CACP submits its recommendations to the government. The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister takes a final decision on the level of MSPs and other recommendations made by CACP.

Why in News?

• The Cabinet Committee on Economic Affairs chaired by the Prime Minister Narendra Modi has given its approval for the Minimum Support Prices (MSPs) for copra for 2024 season. 
• Milling copra is used to extract oil, while ball/edible copra is consumed as a dry fruit and used for religious purposes.  
• Kerala and Tamil Nadu are major producers of million copra, whereas ball copra is produced predominantly in Karnataka.

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