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Minimum Support Price (MSP)

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CISCE: Class 10

Key Points: Minimum Support Price (MSP)

  • Minimum Support Price (MSP) is a support measure announced by the Government of India to protect farmers from a sharp fall in crop prices.
  • MSP is declared at the beginning of the sowing season, giving farmers price assurance before they grow crops.
  • It acts as a guaranteed minimum price at which the government agrees to buy agricultural produce from farmers.
  • MSP prevents distress sales by farmers during years of bumper production and excess supply in the market.
  • Government agencies purchase crops at MSP if market prices fall below the announced rate, helping farmers and ensuring food supply for public distribution.
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