define MSP. why it is helpful for farmers
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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. ... MSP is price fixed by Government of India to protect the producer - farmers - against excessive fall in price during bumper production years.
Minimum Support Price or MSP is an Agriculture product price set by the Government of India to purchase directly from the farmer. This rate is to safeguard the farmer to a minimum profit for the harvest, if the open market has lesser price than the cost incurred.
The idea behind MSP is to give guaranteed price and assured market to the farmers and protect them from the price fluctuations and market imperfections. ... Further, with the globalization resulting in freer trade in agricultural commodities, it is very important to protect the farmers and their interest.