What is MSP? and Does it benefit for farmers?
Introduction: Assurance of a remunerative and stable price environment for growers/farmers is very important for increasing agricultural production and productivity. The market price for agricultural produce many times tends to be unstable and volatile which may result into undue losses to the growers and discourage adoption of the modern technology and required inputs. And as a result, the minimum support price (MSP) was announced. What is MSP and Who declares MSP? The Minimum Support Price (MSP) is an agricultural product price set by the Government of India to purchase directly from the farmers. This rate is to safeguard the farmer to a minimum profit for the harvest, if the open market has lesser price than the cost incurred. The Cabinet Committee on Economic Affairs (CCEA) , Government of India, determines the Minimum Support Prices (MSP) at the beginning of the sowing season of various agricultural commodities in India based on the recommendations of the Commission for Agricultu...