what minimum support price in SP which is MSP needed
Answers
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.
Answer:
1) Minimum Support Price is the price at which the farmer can sell their products government or others.
2) This is decided by government every year during reaping time by considering the cost of production and nominal profit of farmer.
3) Traders or government have to purchase agricultural products at this price or more.
4) MSP provides minimum guarantee to the value of crops and farmers can sell crops at more prices according to demand.
5) This prevent traders syndicate of reducing price.