Economy, asked by Genius8246, 1 year ago

How does rising msp affect food security

Answers

Answered by nupurptl11
1



MSPs cannot be a cause for food inflation. All that this does is to guarantee a minimum price to the farmer. It assures him of a return, and may in fact lead to over supply of the supported crops, causing a downward pressure on food prices.

In India, MSPs involve subsidy. To bridge the gap between MSP and the retail prices fixed for Public Distribution System for BPL citizens. Subsidies indirectly lead to inflation (general inflation, not specifically food inflation) or act as a brake on economic growth.

hope it can help u
Answered by adi977446
0

You can see and find it in your economy book

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