HORTICULTURE

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: -The MSP is the rate at which the government purchases crops from farmers, and is based on a calculation of at least one-and-a-half times the cost of production incurred by the farmers. MSP is a “minimum price” for any crop that the government considers as remunerative for farmers and hence deserving of “support”.

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).