what is msp ? why it is announsed by gov before the sowing crop ?
Answers
MSP means minimum support price .
The farmers are paid a pre-announced price for crops . This price is called minimum support price .
The MSP is declared by govt. every year before the sowing season to provide incentives to farmers fo raising the production of these crops.
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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.
Sometimes, the government procures at a higher price than the MSP. Here, the price will be referred as procurement price. The procurement price will be announced soon after the harvest. Normally, the procurement price will be higher than the MSP, but lower than the market price. The price at which the procured and buffer stocke food grains are provided through the PDS is called as issue price.