MANAGEMENT

Detailed explanation-1: -MSP is price fixed by Government of India to protect the producer-farmers-against excessive fall in price during bumper production years. The minimum support prices are a guarantee price for their produce from the Government.

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: -MSP is fixed on the recommendations of the Commission for Agricultural Costs and Prices (CACP), an apex advisory body for pricing policy under the Ministry of Agriculture.

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.

Detailed explanation-5: -The Government’s price policy for agricultural commodities seeks to ensure remunerative prices to the growers for their produce with a view to encourage higher investment and production and to safeguard the interest of consumers by making available supplies at reasonable prices with low cost of intermediation.