what is minimum support price (MSP)? why is MSP needed??
Answers
Answer:
Minimum Support Price (MSP) is a fixed price paid by the Government of India to farmers whenever they procure a particular crop. It is fixed prior to the sowing season to encourage higher investment and production of agricultural commodities. It is to be noted that MSP cannot be altered in any given situation.
Answer:
Minimum support price is the price at which the government purchases crops from the farmers. It's an important part of India's agricultural price policy. It was declared in 1965 as a tool for agricultural price policy to meet many objectives.
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. The Indian government sets the price for 23 commodities twice a year.