FOOD TECHNOLOGY

Detailed explanation-1: -Every year, the minimum support price is declared by the government before the sowing season. The MSP acts as an incentive for farmers to grow more crops. The surplus foodgrains are then purchased by the Food Corporation of India and stored in granaries.

Detailed explanation-2: -The government of India sets the MSP twice a year for 24 commodities. This is done by the government to protect the farmers against a fall in prices in a year of bumper production. When the market price falls below the declared MSP, the government would purchase the entire quantity from the farmers at MSP.

Detailed explanation-3: -As India is an agricultural country, protecting our farmers has to be on the top list of the government. This is why, to protect farmers from such uncertainties, the Minimum Support Price or MSP was introduced by the government of India in the year 1966-67.

Detailed explanation-4: -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 Commission for Agricultural Costs and Prices (CACP).

Detailed explanation-5: -This price is called Minimum Support Price (MSP). The MSP is declared by the government every year before the sowing season to provide incentives to the farmers for raising the production of these crops.