Minimum Support Prices: Coverage & Mechanism

MSP: Coverage and Mechanism

Definition and Objective

  • Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.
  • The minimum support prices are announced by the Government of India at the beginning of the sowing season for certain crops on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP).
  • MSP is price fixed by Government of India to protect the producer - farmers - against excessive fall in price during bumper production years.
  • The minimum support prices are ....
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Indian Economy