Saturday, January 17, 2009

Crop Insurance Premium To Be Considered For MSP - Jan 17, 2009

The Union government will now think about the crop insurance premium and the marketing and transport charges incurred by farmers while setting the minimum support price (MSP) for crops. The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Manmohan Singh, approved the proposal that the Commission for Agriculture Costs and Prices (CACP) take into account the insurance premium, marketing and transportation charges incurred by farmers.

The CCEA also agreed with the suggestion of the Y.K. Alagh Expert Committee that the CACP not be given a statutory status. The CACP is an advisory body that recommends MSP for about 20 crops during the rabi and kharif season. Set up in 2003, it was to examine the methodology of fixing the MSP. It submitted its report on May 31, 2005. Home Minister P. Chidambaram told journalists that the CCEA approved the recommendations of the expert committee to examine the methodological issues in fixing the MSP. The CCEA approved that the CACP would consider quality aspects of the produce in its price and non-price recommendations. A technical committee would be constituted to look into the existing survey schedule for cost studies and it would be customized, if necessary.

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