- MSP is a government-announced price floor for certain crops. - It is intended to protect farmers from price crashes and ensure a minimum return. - The MSP is usually set based on recommendations considering costs of production and aims to be remunerative. - It functions as a support, meaning it is generally fixed higher than the market price during periods of high supply and potential distress sales.
How is the Minimum Support Price (MSP) generally fixed ?
Asked in MPSC CS Prelims 2012 · Topic: Agriculture and Allied Sectors (Agricultural Policies and Programs (MSP, Subsidies))
More Economic Development questions
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