To protect the interests of the farmers/producers against any sharp decline in agricultural prices, the Government has been following the agricultural price support system since 1965.
The price support system is expected to help the farmers after the harvesting period which is associated with high probability of the agricultural prices crashing due to surplus stock in the market.
A Government guaranteed MSP to farmers is expected to cover the cost of production together with certain profit margin to them.
Challenges to MSP
Calculation of the Minimum Support Price, the CACP considers both C2 cost and A2+FL cost. C2 cost includes ....
