ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -“Only 6% of Indian farmers benefit from minimum support prices (MSP)”.

Detailed explanation-2: -The percentage of output sold by households under MSP ranges from 0 to 24.7 per cent (except sugarcane), according to the National Sample Survey – NSS 77th round. Data presented by the Agriculture Ministry in the Lok Sabha in August last year shows that a little over 14 per cent of land-owning farmers benefit from MSP.

Detailed explanation-3: -Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.

Detailed explanation-4: -Minimum Support Price (MSP) is a form of government intervention to insure the farmers against a steep decline in the prices of their goods and to help them prevent losses. It is the minimum price set by the government for certain agricultural products. The farmers are paid a pre-announced price for their crops.