Question

why does the government of India fix support price for some crops explain?

Answer 1

just because farmers are poor so they have fixed the amount so they could not be burdened

Answer 2

The significant targets are to help the farmers from trouble deals and to get sustenance grains for public distribution.

Agricultural Costs and Prices (CACP). MSP (minimum support price) is cost settled by Government of India to ensure the producer- agriculturists - against unnecessary fall in cost amid bumper generation years. The base help costs are an assurance cost for their delivery from the Government that this will be the base cost at which their item will fetch.If the market cost is above, MSP, the farmers can clearly offer it at the market prices.In case the market cost of the product or the good falls beneath the declared least cost because of excess in the market, government organizations buy the whole amount offered by the agriculturists at the announced minimum price.