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). 

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 (finger millet)), 5 pulses (gram, tur, moong, urad, lentil), 7 oilseeds (groundnut, rapeseed-mustard, soyabean, sesamum, 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 (CCEA), chaired by the Prime Minister Narendra Modi, has approved the Minimum Support Prices (MSP) of Raw Jute for Marketing season 2025-26.

https://pib.gov.in/PressReleasePage.aspx?PRID=2095069