GENERAL KNOWLEDGE

Detailed explanation-1: -In 1966, the Minimum Support Price for food grains was introduced. It is the price at which government purchases crops from the farmers. It is an important part of India’s agricultural price policy.

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: -Towards this end, the Government announces, Minimum Support Prices (MSP) for 25 major agricultural commodities each year in both the Crop seasons after taking into account the recommendations of the Commission for Agricultural Costs and Prices (CACP).

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.