Question

what are the advantages and disadvantages of minimum support price​

Answer 1

Explanation:

Advantages of MSP

The Minimum Support Price mechanism has been beneficial in transferring incomes to rural areas and to counter farm level inflation. It can also counter the agricultural distress brought on by natural hazards in the country. It gives farmers hope of earning more in the new sowing season.

Disadvantages of the Minimum Support Price:

This practice will create the problem to allocate inefficiency in the country. II. Subsidizing farmers through higher product prices is an inefficient method because it penalizes the consumer with higher prices. Also it means large farmers will benefit the most

Answer 2

Explanation:

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