A. What is Minimum Support Price (MSP)? How is it being implemented in your area
Answers
Explanation:
Answer. MSP (Minimum support price) : Minimum support price is a price at which the farmers can sell the grains if they want to the government. The government sets the MSP so as to cover the cost of cultivation and allow a ittle bit profit to the farmers.
Answer:
1) Minimum Support Price is the price at which the farmer can sell their products government or others.
2) This is decided by government every year during reaping time by considering the cost of production and nominal profit of farmer.
3) Traders or government have to purchase agricultural products at this price or more.
4) MSP provides minimum guarantee to the value of crops and farmers can sell crops at more prices according to demand.
5) This prevent traders syndicate of reducing price.