Question

why does the government declare minimum support price ??

Answer 1

The government declare minimum support price because if there is a fall in the prices of the crops, after a bumper harvest, the government purchases it at the MSP and no one can buy below this price MSP declared by govt. So this directly helps the farmers.

Answer 2

The government declares the minimum support price(MSP) to provide incentives to the farmers so that they would grow crops in large nimbers and sell it to the government