Question

in what ways MSP minimum support price approved much is significant for farmers explain

Answer 1

In formulating the recommendations in respect of the level of minimum support prices and other non-price measures, the Commission takes into account, apart from a comprehensive view of the entire structure of the economy of a particular commodity or group of commodities, the following factors:-

Cost of production

Changes in input prices

Input-output price parity

Trends in market prices

Demand and supply

Inter-crop price parity

Effect on industrial cost structure

Effect on cost of living

Effect on general price level

International price situation

Parity between prices paid and prices received by the farmers.

Effect on issue prices and implications for subsidy

Answer 2

Minimum support price is the price at which government purchase crops From the farmers, whatever may be the price for the crops minimum support price is an important part of India's agricultural price policy.

The Msp helps to incentivize the farmers and the ensures adequate food grains production in the country. I gives sufficient remuneration to the farmers provides food grains supply to buffer stock and supports the food security programmes through PDS and other programmes





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