Agriculture and food
Minimum support price (MSP, India)
The price at which the Indian government offers to buy certain crops from farmers.
Last reviewedWhat does Minimum support price (MSP, India) mean?
The minimum support price is a price the Government of India announces each season for certain crops, based on recommendations from the Commission for Agricultural Costs and Prices (CACP). It is meant to protect farmers from price crashes. Since 2018-19, the government has set MSPs at least 1.5 times the cost of production measured as paid-out costs plus the value of family labour (A2+FL). Example: if that cost is 1,500 per quintal (100 kg), the MSP is set at 2,250 or more. In practice, government buying at MSP is concentrated in rice and wheat and in certain states, through the Food Corporation of India and state agencies, so many farmers of other crops sell below MSP.
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