Subject: Agricultural Price Policy (Continued)
1. Recap from Last Video:
* Agricultural Price Policy started.
* Discussed the policy announced in 1965 and the establishment of the Agricultural Prices Commission in the same year.
2. Commission for Agricultural Costs and Prices (CACP):
* The Agricultural Prices Commission (established 1965) was renamed the Commission for Agricultural Costs and Prices (CACP) in 1985. (వ్యవసాయ వ్యయాలు మరియు ధరల కమిషన్).
* Role: Recommends various agricultural prices to the government.
3. Types of Prices Recommended/Determined by CACP & Government:
* కనీస మద్దతు ధర (Minimum Support Price - MSP):
* Recap: Already discussed. Declared for 22 crops annually (14 Kharif, 6 Rabi, 2 other commercial crops).
* Purpose: To provide a safety net for farmers.
* Exam Relevance: Mentioned TSPSC Group 1 Prelims question (How many Kharif crops had MSP in 2022-23? Ans: 14) and Civil Services question (Identify crop not in MSP list). Requires knowing the list of 22 crops.
* సేకరణ ధర (Procurement Price):
* Price at which the government procures processed food grains (like rice, wheat flour) from millers, agencies, and sometimes farmers, primarily for the Public Distribution System (PDS).
* Usually lower than the market price. (Example given: ₹28.50/kg for rice).
* The difference between the market price/cost and the procurement price involves government decisions and potential subsidies.
* లేవీ ధర (Levy Price):
* Price at which the government procures raw/unprocessed agricultural produce (like paddy, raw groundnuts) directly from farmers, especially when market prices fall below MSP.
* Generally equal to the MSP.
* Often considered alongside Procurement Price, relating to PDS needs but focusing on raw materials.
* జారీ ధర (Issue Price):
* Price at which the Central Government sells/allocates procured food grains (like rice, wheat) to State Governments for the PDS.
* Usually lower than the Procurement Price due to Central Government subsidy for PDS.
* Historically varied based on the ration card type (e.g., BPL, APL, AAY - Antyodaya Anna Yojana). Historical examples given: ₹7.95/kg (APL), ₹5.65/kg (BPL/Priority Households), ₹3.00/kg (AAY).
* The difference between Procurement Price and Issue Price represents the Central Government's food subsidy.
* Current Context (as of video): For rice under PDS, the Central Govt is providing it free of cost to states (since Jan 2023, extended via Garib Kalyan Anna Yojana), meaning the Issue Price for PDS rice is effectively zero currently.
* పాలిత ధర (Administered Price):
* Price set by the government for goods/services produced by Public Sector Undertakings (PSUs).
* Distinct from Administered Price Policy (పాలిత ధరల విధానము), which refers to the government's strategy of buying grains when prices are low and selling when high to stabilize prices.
* చౌక ధర (Fair Price Shop Price):
* Price at which State Governments sell PDS grains to consumers through Fair Price Shops (Ration Shops).
* Can be equal to or lower than the Issue Price.
* The difference between Issue Price and Fair Price Shop Price represents the State Government's food subsidy.
* Historical Context: Mentioned YSR's ₹2/kg rice scheme (from April 2008) and Nallari Kiran Kumar Reddy's ₹1/kg rice scheme (from Nov 2011) in undivided AP, which were below the Central Issue Price, requiring state subsidy.
* Current Context: Since the Centre provides rice free (Zero Issue Price), states distributing it free incur no additional subsidy burden for the rice itself (though operational costs exist).
4. Determination Process (for MSP, Procurement, Issue Prices):
* Recommended by: CACP (Commission for Agricultural Costs and Prices)
* Approved by: Cabinet Committee on Economic Affairs (CCEA) - కేంద్ర ఆర్థిక వ్యవహారాల క్యాబినెట్
* Announced/Implemented by: Central Government
5. Public Distribution System (PDS) Logistics:
* Food Corporation of India (FCI) procures and manages stocks.
* To minimize transport costs, procurement and storage often happen regionally. Grains procured in a state like Telangana might be stored locally to meet Telangana's PDS needs and supply nearby states (like Tamil Nadu) directly, rather than transporting everything to a central point and back.
6. Course Topics Covered So Far:
* Agricultural Policies & Green Revolution
* Cooperative Farming
* Agricultural Marketing
* Agricultural Price Policy (This topic)
7. Next Topic:
* వ్యవసాయ పరపతి (Agricultural Credit)
8. Book Announcement:
* New Economy book (Indian Economy + Telangana Economy & Development Issues for Telangana candidates; Indian Economy for AP candidates) launching May 18th.
* Fully updated, available at local bookstores.
Key Relationships:
Levy Price ≈ MSP
Procurement Price < Market Price (Generally)
Issue Price ≤ Procurement Price (Difference = Central Subsidy)
Fair Price Shop Price ≤ Issue Price (Difference = State Subsidy)
Current PDS Rice: Issue Price = ₹0; Fair Price Shop Price = ₹0 (Central Govt covers cost difference from procurement).
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