Question map
Consider the following : 1. Areca nut 2. Barley 3. Coffee 4. Finger millet 5. Groundnut 6. Sesamum 7. Turmeric The Cabinet Committee on Economic Affairs has announced the Minimum Support Price for which of the above ?
Explanation
The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi approved increases in Minimum Support Prices (MSPs) for kharif crops for the 2018-19 season on July 4, 2018.[2] The Cabinet also approved enhanced MSPs for Rabi crops of 2018-19.[3]
Among the crops listed, barley is a rabi (winter) crop, while finger millet (ragi), groundnut, and sesamum are kharif (summer-sown) crops for which MSPs were announced in 2018. Specifically, the MSP of ragi (finger millet) was increased by Rs. 997 per quintal.[4]
On the other hand, areca nut, coffee, and turmeric are plantation/commercial crops that typically do not fall under the standard MSP regime announced by the Cabinet Committee on Economic Affairs for seasonal crops. Therefore, option B (2, 4, 5, and 6 only) correctly identifies barley, finger millet, groundnut, and sesamum as the crops from the given list for which MSPs were announced.
Sources- [1] https://apps.fas.usda.gov/newgainapi/api/report/downloadreportbyfilename?filename=Grain%20and%20Feed%20Update_New%20Delhi_India_7-17-2018.pdf
- [2] https://www.pib.gov.in/PressReleasePage.aspx?PRID=1537546
- [3] https://eands.da.gov.in/PDF/November2018.pdf
- [4] https://www.pib.gov.in/PressReleasePage.aspx?PRID=1537546
PROVENANCE & STUDY PATTERN
Full viewA classic 'Static disguised as Current Affairs' question. While the 2018 MSP hike was the news trigger, the answer relies entirely on the static list of 23 mandated crops. It tests the boundary between Field Crops (Agriculture Ministry) and Plantation Crops (Commerce Ministry).
This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.
- Statement 1: Did the Cabinet Committee on Economic Affairs announce the Minimum Support Price for areca nut in 2018?
- Statement 2: Did the Cabinet Committee on Economic Affairs announce the Minimum Support Price for barley in 2018?
- Statement 3: Did the Cabinet Committee on Economic Affairs announce the Minimum Support Price for coffee in 2018?
- Statement 4: Did the Cabinet Committee on Economic Affairs announce the Minimum Support Price for finger millet in 2018?
- Statement 5: Did the Cabinet Committee on Economic Affairs announce the Minimum Support Price for groundnut in 2018?
- Statement 6: Did the Cabinet Committee on Economic Affairs announce the Minimum Support Price for sesamum in 2018?
- Statement 7: Did the Cabinet Committee on Economic Affairs announce the Minimum Support Price for turmeric in 2018?
This snippet lists 'Areca nut' among crops in a question asking which of the listed crops the Cabinet Committee on Economic Affairs has announced the MSP for (implying CCEA announcements for crops including areca nut are discussed in these sources).
A student could use this to suspect that areca nut was one of the crops for which MSP announcements by CCEA exist and then check year-wise CCEA/MSP notifications (e.g., 2018 CCEA press releases or government MSP lists) to confirm the date.
States the rule that MSPs are announced by the Government based on CACP recommendations and require approval of the Cabinet Committee on Economic Affairs (CCEA).
Use this rule to interpret any official MSP announcement for areca nut as necessarily having CCEA approval and to target CCEA approval records for 2018 when verifying the claim.
Describes that in 2018 the government launched PM-AASHA (an MSP-related umbrella) with mechanisms for implementing MSPs, indicating notable MSP policy activity in 2018.
Combine this with a targeted search of MSP changes around Sept 2018 (CCEA/Ministry notifications) to see if areca nut MSP was announced as part of 2018 policy actions.
Notes the Union Cabinet approved PM-AASHA in September 2018 to ensure remunerative prices and includes procurement mechanisms—showing Cabinet-level action related to MSPs in 2018.
Use the timing of cabinet approval (Sept 2018) to narrow searches for MSP announcements by CCEA in 2018, checking whether areca nut appears in contemporaneous MSP lists.
Explains determinants and scope of MSPs and notes government announces MSPs for multiple crops (22 mandated crops and additional items), implying MSPs can cover a variety of crops beyond staples.
Combine this general scope with the specific crop list (snippet 1) to justify checking official MSP lists (which enumerate crops and years) for areca nut in 2018.
Contains an explicit MCQ listing 'Barley' among crops for which the Cabinet Committee on Economic Affairs has announced MSP, indicating such lists/questions exist in exam sources.
A student could look up the answer key or the original CCEA/MSP notification for the year 2018 to see whether barley appears on the approved list.
States the formal rule that MSPs are announced before sowing based on CACP recommendations and require approval of the CCEA.
Use this rule to narrow the search to CCEA approvals made before sowing seasons in 2018 (look for CCEA minutes/press releases around pre‑sowing periods).
Notes that the Union Cabinet approved the PM‑AASHA umbrella scheme in September 2018 to ensure remunerative prices and includes procurement mechanisms for pulses, oilseeds and copra—showing the Cabinet was active on price/procurement policy in 2018.
A student could check CCEA/Cabinet announcements around Sept–Oct 2018 to see if barley MSP was part of broader 2018 price/procurement measures.
Records that in 2018 the government launched PM‑AASHA (including Price Support Scheme) as an implemented MSP‑related mechanism, implying policy activity on MSPs that year.
Combine this with the timing rule (snippet 2) to search for specific MSP notifications or CCEA approvals issued in 2018 tied to PM‑AASHA.
Defines MSP as the pre‑announced price declared yearly before sowing to incentivize farmers, implying there will be annual lists of crops/prices to consult.
Use the fact MSPs are published annually to examine the 2018 MSP schedule/list (often in government releases or Ministry of Agriculture records) for barley.
This past-question lists coffee among crops and asks which of them the Cabinet Committee on Economic Affairs (CCEA) has announced MSP for, implying CCEA is an authority that announces MSPs for specific crops.
A student could check lists of crops for which CCEA/GoI announced MSPs and see if coffee appears for 2018 specifically (e.g., by comparing official MSP lists around 2018).
Shows that the CCEA approves price-related remunerative rates (example: Fair and Remunerative Price for sugarcane), indicating CCEA involvement in setting agricultural prices.
Use this pattern to infer CCEA plausibly had the authority to announce MSP for other crops like coffee in a given year and then check 2018 CCEA/Ministry releases.
Describes 2018 policy action (launch of PM-AASHA) tied to MSP implementation and mechanisms, indicating 2018 was an active year for MSP-related government measures.
Given MSP-related initiatives in 2018, a student could examine 2018 official notifications/releases tied to PM-AASHA or CCEA minutes to see if coffee MSP was announced then.
Notes the Union Cabinet approved PM-AASHA in September 2018 to ensure remunerative prices, linking Cabinet activity in 2018 to MSP objectives.
Because the Cabinet acted on MSP mechanisms in 2018, a student could search September–December 2018 Cabinet/CCEA announcements for specific MSP declarations (including coffee).
Explains that the government announces MSP for a set of mandated crops (22 crops mentioned) and describes how MSPs are determined.
A student could compare the official list of 22 mandated crops and year-wise MSP announcements to see whether coffee was added or had an MSP announced in 2018.
- Official press text states the CCEA approved a hike in MSPs for Kharif crops for the 2018-19 season.
- The passage explicitly lists Ragi (finger millet) with an MSP increase (Ragi up by Rs.997/quintal).
- Specifies the date (July 4, 2018) when the CCEA approved significant increases in MSPs for kharif crops.
- Confirms the Cabinet Committee on Economic Affairs chaired the decision in 2018.
Contains an exam-style question listing crops (including finger millet) and asking which of them the Cabinet Committee on Economic Affairs has announced MSP for—implying CCEA announcements for crops are a known topic and that finger millet is considered in such lists.
A student could check official CCEA/MSP announcement lists for 2018 or cross-reference crop-specific MSP lists for that year to see if finger millet appears.
States the formal rule: MSPs are announced based on CACP recommendations and upon approval of the Cabinet Committee on Economic Affairs (CCEA).
Use this procedural rule to limit searches to CCEA/Ministry of Agriculture press releases or CACP recommendations from 2018 to verify any MSP change for finger millet.
Shows that price decisions for specific crops (e.g., Fair and Remunerative Price for sugarcane) are approved by CCEA, reinforcing that CCEA is the approving authority for crop price measures.
Apply this pattern to expect that any MSP for finger millet in 2018 would be documented as a CCEA approval or related ministry order.
Notes that the Union Cabinet approved PM-AASHA in September 2018 to ensure remunerative prices and includes mechanisms (like Price Support Scheme) relevant to implementation of MSP/price support in 2018.
A student could examine PM‑AASHA/Price Support Scheme documents and 2018 procurement/MSP lists to see if finger millet was targeted under those schemes or had an MSP announced around the same time.
Defines MSP as a GoI-announced uniform rate used for procurement across the country, clarifying the nature of MSP announcements to look for (official GoI procurement rates).
Search government MSP tables/notifications for 2018 for a uniform MSP entry for finger millet to confirm whether an MSP was announced that year.
Explains the institutional rule: MSPs are announced based on CACP recommendations and require approval of the Cabinet Committee on Economic Affairs (CCEA).
A student can use this to infer that any MSP announced in 2018 would have needed CCEA approval and then check 2018 CCEA records or MSP notifications for groundnut.
Lists groundnut among oilseeds included in the MSP crop coverage (groundnut appears in the list of crops for which MSP is relevant).
Knowing groundnut is an MSP-eligible oilseed, a student can narrow searches to MSP announcements for oilseeds/groundnut in 2018.
Records that the Union Cabinet approved PM-AASHA in September 2018 to ensure remunerative prices for pulses, oilseeds and copra — signalling government attention to oilseeds policy in 2018.
A student could treat 2018 as a plausible year for policy moves affecting oilseeds (including groundnut) and check MSP revisions or cabinet approvals around that time.
Contains an exam-style question asking which items (including groundnut) the Cabinet Committee on Economic Affairs has announced MSP for — implying that CCEA announcements are the mechanism to declare MSP for listed crops.
Use this as an example that CCEA announcements are the relevant source; a student should consult CCEA/MSP records for the specific crop and year (2018).
Notes that PM-AASHA (launched 2018) was designed to implement mechanisms (like Price Support Scheme) to address gaps in the MSP system for pulses and oilseeds.
A student can infer 2018 saw policy activity around MSPs for oilseeds and therefore check whether groundnut MSPs were set/changed via CCEA in that policy period.
- Official PIB press release states the CCEA approved increases in MSPs for all kharif crops for the 2018-19 season.
- If sesamum was included among kharif crops, this approval covers its MSP announcement in 2018.
- USDA report notes that on July 4, 2018 the CCEA approved a significant increase in MSPs for the kharif season.
- This provides a dated source confirming the CCEA action on MSPs in 2018.
- PIB text reiterates that the CCEA 'has approved the increase in the Minimum Support Prices (MSPs) for all kharif crops for 2018-19'.
- Confirms the CCEA announcement of MSPs for the 2018-19 kharif season (which would encompass kharif crops).
States the formal procedure: MSPs are announced based on CACP recommendations and require approval of the Cabinet Committee on Economic Affairs (CCEA).
A student can use this rule to know that any MSP claimed for 2018 would need a CCEA approval record or press release from that year.
Describes the Sept 2018 Union Cabinet approval of PM–AASHA, an umbrella scheme whose Price Support Scheme physically procures 'pulses, oilseeds and Copra'.
Since sesamum is an oilseed, a student could check 2018 MSP lists or CCEA announcements for oilseeds under PM–AASHA to see if sesamum was included.
Notes that PM–AASHA was launched in 2018 to implement MSP/price support via mechanisms like the Price Support Scheme.
Use this to justify searching 2018 MSP notifications or PSS procurement lists (central/state) for sesamum as part of the 2018 measures.
Contains an exam-style item listing crops (including sesamum) and asking which ones the CCEA has announced MSP for (context dated 2019).
A student could use this to infer that sesamum has been discussed in CCEA/MSP contexts and then look up the specific CCEA decision or MSP list around 2018–2019.
Shows precedent that the CCEA approves price mechanisms for agricultural produce (example: sugarcane FRP).
Supports the expectation that any MSP for sesamum would be formalized via a CCEA approval document available for the relevant year.
Explains the formal MSP process: CACP recommends and the Cabinet Committee on Economic Affairs (CCEA) approves MSPs before each crop season.
A student could use this to check CCEA/Ministry press releases or CACP recommendations for 2018 to see whether turmeric was on the approved list that year.
Contains an exam question (2019) listing turmeric among crops and asking which ones the CCEA announced MSP for, implying turmeric's MSP status was a recent question of record.
Use the option set and year (2019 question) to infer which crops' MSP announcements around 2018–2019 were noteworthy and then check official MSP announcements for turmeric in 2018.
Notes that in 2018 the government launched PM-AASHA to implement MSP-related support mechanisms, indicating 2018 was an active year for MSP policy action.
A student could infer heightened MSP-related activity in 2018 and therefore search 2018 policy documents/CCEA decisions for specific MSP declarations such as for turmeric.
Records that the Union Cabinet approved PM-AASHA in September 2018 to ensure remunerative prices as announced in the 2019 budget — linking Cabinet-level action in 2018 to price-support measures.
Combine this with the MSP process (snippet 2) to focus checks on Cabinet/CCEA communications in late 2018 and early 2019 for turmeric MSP decisions.
Gives an example that price decisions (e.g., sugarcane FRP) are approved by the CCEA, reinforcing that CCEA is the authoritative body for such price approvals.
A student can treat CCEA records as the primary source and look up CCEA meeting outcomes for 2018 to verify whether turmeric MSP was announced.
- [THE VERDICT]: Sitter. Solvable in 10 seconds via elimination if you know the basic MSP list found in any standard Economy text (Vivek Singh/Singhania).
- [THE CONCEPTUAL TRIGGER]: The 2018 CCEA approval of the 'Historic MSP Hike' (1.5x production cost formula) for Kharif crops.
- [THE HORIZONTAL EXPANSION]: Memorize the 23 MSP Crops: 7 Cereals (Paddy, Wheat, Maize, Jowar, Bajra, Barley, Ragi); 5 Pulses (Gram, Tur, Moong, Urad, Lentil); 7 Oilseeds (Groundnut, Mustard, Soybean, Sesamum, Sunflower, Safflower, Nigerseed); 4 Commercial (Copra, Cotton, Jute, Sugarcane [FRP]).
- [THE STRATEGIC METACOGNITION]: Don't just read 'MSP increased'. Ask 'For whom?'. Differentiate between MSP (CACP mandated) and Market Intervention Scheme (MIS) which covers horticultural crops like Areca nut, Turmeric, and Onion upon state request.
The question asks whether CCEA announced an MSP; references describe the formal MSP approval chain involving CACP and CCEA.
High-yield for UPSC: knowing the institutional process for MSP helps answer policy and scheme questions. Connects to topics on agricultural pricing, governance and inter-ministerial approvals; useful for questions asking who authorises/implements price support. Learn by mapping actors (CACP → Ministry → CCEA) and typical chronology.
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.3 Minimum Support Price (MSP) > p. 305
PM-AASHA was approved in 2018 to ensure remunerative prices and includes procurement mechanisms relevant to MSP-related interventions.
Important for UPSC: links a 2018 government action to mechanisms (Price Support Scheme, Price Deficiency Payment, etc.) that affect MSP implementation. Useful for questions on farmer welfare schemes, procurement policy and year-specific government decisions; memorize scheme components and the year of approval.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 6: Economic Planning in India > I. Contribution in major Agricultural Sector Reforms: > p. 146
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.4 PM – AASHA > p. 308
Knowing that the government announces MSP for a set number of mandated crops and that sugarcane uses FRP helps evaluate crop-specific MSP claims (like areca nut).
High-yield: many UPSC questions test which crops get MSP vs FRP and the list/scope of MSP coverage. Master the concept to eliminate incorrect crop-specific options and connect to procurement/price policy questions.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 9: Agriculture > Objectives of MSP include: > p. 329
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.3 Minimum Support Price (MSP) > p. 305
References state MSPs are announced based on CACP recommendations and require approval of the Cabinet Committee on Economic Affairs (CCEA).
High-yield for UPSC: explains the institutional process for MSP fixation, links to questions on agricultural policy-making and governance. Useful for answering questions on who sets prices, policy accountability, and inter-ministerial roles; connects to procurement, food security and budgetary decisions.
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.3 Minimum Support Price (MSP) > p. 305
Evidence notes MSPs are declared before sowing each season and currently lack legal backing as an enforceable right for farmers.
Important for framing analytical answers on farmers' rights, market interventions and reform debates. Helps in discussing limits of MSP, policy reforms (e.g., calls for statutory MSP), and links to topics like farm laws, procurement, and rural distress.
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.3 Minimum Support Price (MSP) > p. 305
- Economics, Class IX . NCERT(Revised ed 2025) > Chapter 4: Food Security in India > What is Buffer stock? > p. 47
Sources describe the 2018 PM‑AASHA umbrella scheme and its three mechanisms (Price Support Scheme, Price Deficiency Payment, private procurement pilot) aimed at ensuring remunerative prices announced via MSP.
Directly relevant to questions on policy measures to guarantee MSP outcomes; enables candidates to explain how announced MSPs are operationalised through procurement and deficiency payments. Connects to public distribution, buffer stocks and agricultural subsidy debates.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 6: Economic Planning in India > I. Contribution in major Agricultural Sector Reforms: > p. 146
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.4 PM – AASHA > p. 308
References distinguish declaring/announcing MSP from government procurement at MSP, clarifying that announcement does not automatically mean procurement.
High-yield for UPSC: candidates must know the functional difference between policy signals (MSP announcement) and operational actions (procurement). This connects to topics on food security, PDS, and implementation gaps and helps answer questions about policy intent versus execution.
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 10: Agriculture - Part I > 10.3 Minimum Support Price (MSP) > p. 306
Sugarcane does not get MSP; it gets FRP (Fair and Remunerative Price). Also, Toria and De-husked Coconut do not have separate CACP reports; their MSP is fixed based on Rapeseed/Mustard and Copra respectively.
The 'Ministry Separation' Hack: Coffee (3) and Areca Nut (1) are Plantation Crops. These are governed by the Ministry of Commerce (Coffee Board), not the Ministry of Agriculture. MSP is an Agriculture Ministry tool. Eliminating Coffee (3) removes options A, C, and D instantly.
Mains GS3 (Cropping Patterns): The MSP regime is criticized for skewing production toward cereals (Rice/Wheat) at the cost of pulses and oilseeds. This connects to 'Nutritional Security' and 'Water Crisis' in Punjab/Haryana.