MINIMUM SUPPORT PRICE (MSP) – Indian Economy UPSC Notes
MSP is the price at which the Government of India guarantees to purchase crops from farmers, irrespective of market price fluctuations.
MINIMUM SUPPORT PRICE (MSP) – Indian Economy UPSC Notes MINIMUM SUPPORT PRICE (MSP) The Minimum Support Price (MSP) is the price at which the Government of India guarantees to purchase crops from farmers, irrespective of market price fluctuations. It acts as a safety net to ensure farmers get a fair price for their produce. Objective of MSP To safeguard farmers from price volatility in the market. To ensure remunerative prices and boost agricultural productivity. To encourage the adoption of modern farming techniques. To maintain food security by ensuring a steady supply of essential crops. HOW MSP IS DETERMINED? The MSP is announced by the Government of India at the beginning of the sowing season based on the recommendations of the Commission for Agricultural Costs and Prices (CACP) . Factors Considered by CACP Cost of Production: Includes input costs such as seeds, fertilizers, labor, and irrigation. Demand and Supply: Ensures alignment with market conditions. Market Price Trends: Evaluates domestic and international price trends. Inter-Crop Price Par…
