PRS · Parliamentary Affairs ·

MSP and Public Procurement

Distilled Policy Brief

  • The central government notifies the Minimum Support Price (MSP) for 23 crops annually based on recommendations from the Commission for Agricultural Costs and Prices, though public procurement remains largely concentrated on paddy, wheat, and limited pulses.

🎯 Prelims High-Yield Examination Points

MSP is announced for 23 crops by the central government based on CACP recommendations, but effective public procurement is heavily concentrated on paddy, wheat, and select pulses in a few states.

⚖️ Mains Analytical & Syllabus Linkages

Examine how the heavy reliance on MSP-backed procurement for wheat and paddy impacts cropping patterns, agricultural sustainability, and regional equity, and discuss measures needed for crop diversification.

🎯 UPSC Prelims Practice Drill

Economy

Consider the following statements regarding the Minimum Support Price (MSP) and public procurement in India: 1. The central government notifies the Minimum Support Price (MSP) annually for 23 crops based on the recommendations of the Commission for Agricultural Costs and Prices (CACP). 2. Public procurement in India is uniformly distributed across all states and covers all 23 MSP-notified crops equally. 3. The National Food Security Act, 2013, requires the central and state governments to progressively undertake reforms to diversify the commodities distributed under the Public Distribution System (PDS). Which of the statements given above are correct?

  • [A] 1 and 2 only
  • [B] 1 and 3 only
  • [C] 2 and 3 only
  • [D] 1, 2 and 3
▶ Reveal Official Answer & Analytical Explanation
✓ Correct Option: [B] 1 and 3 only

The central government notifies MSP for 23 crops annually based on CACP recommendations, making statement 1 correct. However, public procurement is not uniformly distributed and is largely concentrated in a few states (such as Punjab, Haryana, and Madhya Pradesh for wheat) and limited primarily to paddy, wheat, and limited pulses, making statement 2 incorrect. Statement 3 is correct because the National Food Security Act, 2013, mandates governments to progressively undertake reforms to diversify commodities distributed under the PDS.

Tark High-Yield Question Bank ⚡ Practice Full Test in Testing Arena ↗

🏛️ Historical Twin PYQ Anchor (2021)

UPSC Prelims 2021

Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.

Forensic Anchor: Cabinet Allocation of Business Rules & NCAP Framework
Examiner Trap Takeaway: UPSC swapped Central Pollution Control Board role with State Pollution Control Boards for state-level monitoring.

📚 Static Syllabus & Constitutional Linkages

Minimum Support Price (MSP) and CACP: Indian Economy by Ramesh Singh or Sanjeev Verma - Agriculture: Pricing policy, procurement, and public distribution system.