Recently the Assam government has initiated a step to procure 10 lakh MT paddy at Minimum Support Price (MSP) from farmers. In which year the concept of MSP was introduced in India?

The Correct Answer is 1966. Key Points Assam government has initiated a step to procure 10 lakh MT paddy at Minimum Support Price (MSP) from farmers. Measures are directed to step up for procurement of paddy in the state by agencies including FCI, AFCSCL, NAFED, NACOF, NCCF, and ASAMB in a meeting held with officials of FCS&CA, Agriculture and Revenue Department as well as representatives of the procurement agencies. The State government has set a target to procure 10 lakh MT paddy at Minimum Support Price (MSP) from farmers to give them a major financial relief and make agriculture economically more viable. Additional Information The MSP is the rate at which the government purchases crops from farmers, and is based on a calculation of at least one-and-a-half times the cost of production incurred by the farmers. MSP is a “ minimum price ” for any crop that the government considers as remunerative for farmers and hence deserving of “support”. The Commission for Agricultural Costs & Prices (CACP) recommends MSPs for 22 mandated crops and fair and remunerative price (FRP) for sugarcane. It was first introduced in the 1965-66 season (July-June) for wheat, and it now covers 23 crops. It is announced weeks ahead of the Kharif and Rabi sowing seasons. It was introduced to incentivize farmers to grow food crops when India faced a shortage of food grains.