Full formGovernment & Exams
MSPstands forMinimum Support Price
Full Form of MSP
What is MSP?
Minimum Support Price (MSP) is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices. It is the price at which the government purchases crops from farmers, regardless of market rates, thereby guaranteeing a minimum return. The MSP is fixed on the recommendations of the Commission for Agricultural Costs and Prices (CACP), taking into account factors like cost of production, demand and supply, and parity with international prices. It is announced before each sowing season for major kharif and rabi crops, covering commodities such as wheat, rice, pulses, oilseeds, and cotton. The policy aims to ensure food security, encourage crop diversification, and protect farmers from price volatility. In India, MSP is a cornerstone of agricultural policy and frequently features in budget announcements and farmer welfare debates. For competitive exams like UPSC, State PCS, and RBI Grade B, the concept of MSP is crucial in economics and agriculture sections. It is also tied to the Public Distribution System (PDS) as the Food Corporation of India (FCI) procures grains at MSP for distribution.
MSP का फुल फॉर्म
न्यूनतम समर्थन मूल्य
Example
The Union Cabinet approved a hike in the MSP for paddy and wheat for the upcoming rabi season to boost farmer incomes.
MSP — frequently asked questions
What is the full form of MSP?
The full form of MSP is Minimum Support Price. It is a government-set price to protect farmers from price fluctuations.
Which crops are covered under MSP in India?
MSP is announced for 23 crops including cereals (wheat, paddy), pulses (tur, moong), oilseeds (groundnut, mustard), and commercial crops (cotton, sugarcane).
How is MSP determined in India?
The Commission for Agricultural Costs and Prices (CACP) recommends MSP based on factors like cost of production, demand-supply, and price trends, with final approval by the Cabinet.