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About: Minimum support price (India)     Goto   Sponge   NotDistinct   Permalink

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The minimum support price (MSP) is an advisory price signal that is part of a larger set of agricultural policies in parts of India. This informal "support" price (as opposed to procurement or issue price) is recommended by the government and aims to safeguard the farmer to a minimum profit for the harvest while at the same time increasing food security in the country. MSP was initially an incentive for farmers to adopt technology with an aim of increasing the productivity of agricultural land in the 1960s, however in the 2000s it is seen as a market intervention and farmer income scheme. The effectiveness of such a price policy has varied widely between states and commodities. Awareness among farmers of the existence of an MSP is poor at 23%, while awareness of MSP procurement agencies is