FOOD TECHNOLOGY

Detailed explanation-1: -MSP is the price at which government purchases crops from the farmers, whatever may be the price for the crops.2. The minimum support prices are announced by the Government of India at the beginning of the sowing season for certain crops on the basis of the recommendations of the Ministry of Agriculture.

Detailed explanation-2: -Minimum Support Price (MSP) is the minimum price set by the government for certain agricultural products, at which the products would directly be bought from the farmers if the open market prices are less than the cost incurred.

Detailed explanation-3: -The farmers are paid a pre-announced price for their crops. This price is called Minimum Support Price (MSP). Buffer stock is maintained to distribute foodgrains in the deficit areas and among the poorer strata of the society at a price lower than the market price also known as Issue Price.

Detailed explanation-4: -Hence, the price at which the Government purchases food grains for maintaining public distribution is known as Procurement Price.