Agriculture

Economics

MSP or MINIMUM SUPPORT PRICE IN AGRICULTURE. UPSC Economics

A minimum support price or MSP is a risk mitigation or market intervention strategy that ensures a minimum price for 23 crops against any sharp change in farm prices. The central government will announce the MSP or minimum support price before the sowing season based on the CACP or the “commission for agricultural costs and prices”. After the harvest, the farm produce would be directly brought by the notified government agencies like FCI, NAFED, etc.

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