Government hikes minimum selling price of sugar

  1. Government has increased the minimum selling price (MSP) of sugar to support the oversupply hit sugar industry.
  2. MSP is the minimum price paid to the farmers for procuring food crops.It is announced by the Government at the beginning of the sowing season.
  3. There are two objectives of the Minimum Support Price system (a)To prevent distress sale by the farmer in case of a bumper crop (b) To procure the grains for public distribution by fair price shops.
  4. They are recommended by the Commission for Agricultural Costs and Prices (CACP) and approved by Cabinet Committee on Economic Affairs.
  5. Food Corporation of India(FCI) is the nodal agency for procurement along with State agencies.