Minimum Support Price (MSP) is a mechanism through which the government supports farmers by purchasing their crops at a pre-determined price. This assured price encourages farmers to invest in quality seeds and technology without fear of distress sales.
- MSPs is announced by government for 22 mandated agricultural crops.
- It is announced based on the recommendations of the Commission for Agricultural Costs & Prices (CACP).
- Cereals and coarse cereals are procured by the Food Corporation of India (FCI) and designated State Agencies.
Source: The Hindu