what is minimum support price ? explain its implications
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Explanation:
The minimum support price (MSP) is an agricultural product price, set by the Government of India to purchase directly from the farmer. ... By definition, 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.
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Minimum Support Price is the price at which government purchases 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 framers and thus ensures adequate food grains production in the country.
IMPLICATIONS:-
Price incentives in the form of support prices helped India to increase food production dur- ing green revolution period. MSP also aims at procuring food grains from food surplus states for distribution through PDS and maintaining buffer stock and thus bridge the demand supply gap.
Hope it helps you
IMPLICATIONS:-
Price incentives in the form of support prices helped India to increase food production dur- ing green revolution period. MSP also aims at procuring food grains from food surplus states for distribution through PDS and maintaining buffer stock and thus bridge the demand supply gap.
Hope it helps you
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