Question

Difference between issue price and minimum support price.

Answer 1

Answer:

Msp is the minimum support price that the government promises for any agricultural crop whereas issue price is the price at which government issue the same agricultural crop. 2. issue price is for food grains whereas msp is for 25 crops which include both food grains and non flood grains.

Explanation:

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Answer 2

Explanation:

MSP: With a view to provide incentives to the farmers for raising the production of their crops,the government announces price of some crops before the sowing season. The government remains ready to purchase their crops at these pre-announced prices. This price is called minimum support price (MSP).

Issue Price:The purchased food grains are stored in granaries. This is done to distribute food grains among the poorer section of the society. The government makes food grains available to the poor at a price much lower than the market price. This is known as issue price.