What is the full form of MSP?

What is the full form of MSP?

In agriculture, MSP full form is “Minimum Support Price”. It is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in agricultural prices and to help prevent losses. The Government of India fixes the MSP for 23 items twice a year. The Minimum Support Price is announced by the Government of India at the beginning of the sowing season for certain crops based on the recommendations of the Commission for Agricultural Costs and Prices (CACP). This is done by the government to protect the farmers from falling prices in a year of bumper production. When the market price falls below the declared MSP, the government will buy the entire quantity from the farmers at the Minimum Support Price (MSP). MSP is a ‘safety net’ for farmers, It is the core of the agricultural revolution which saw India transform from a food-deficient to a food-surplus nation.

As of now, 23 commodities are covered under MSP, which comprise 7 cereals, 5 pulses, 7 oilseeds, and 4 commercial crops.