Why is MSP declared by the government???
Answers
msp means minimum support price,
MSP is price fixed by Government of India to protect the producer - farmers - against excessive fall in price during bumper production years. The minimum support prices are a guarantee price for their produce from the Government. The major objectives are to support the farmers from distress sales and to procure food grains for public distribution. In case the market price for the commodity falls below the announced minimum price due to bumper production and glut in the market, government agencies purchase the entire quantity offered by the farmers at the announced minimum price.
mark it as brain list and follow me for any help ✌️✌️✌️
Answer: Hey mate!! Here is your answer-
The minimum support price is declared by the government of India at the beginning of sowing season for certain crops on the basis of the recommandators of the Commission of Agricultural Costs and Prices. This MSP is supposed to help farmers against excessive fall in price during bumper production years.
HOPE IT HELPS YOU!!
Explanation: