Minimum Support Price (MSP) UPSC

What is Minimum Support Price (MSP)?

Minimum Support Price (MSP) is a form of government intervention where a minimum price is guaranteed at which certain crops are purchased from farmers. MSP supports the farmers by ensuring them a reasonable income, providing incentives to increase agricultural production, and helping maintain stable food supplies. The MSP is announced by the government before the sowing season. MSP is mainly announced for various essential crops, including cereals (such as rice, wheat, and millets), pulses, oilseeds, and some commercial crops (like cotton and sugarcane). Government agencies, such as the Food Corporation of India (FCI) and different state-level agencies, are responsible for procuring crops from farmers at the MSP. The procured crops are often used for various government programs, including the public distribution system (PDS)....

How is MSP (Minimum Support Price) determined?

The Minimum Support Price (MSP) is determined after taking into consideration various factors related to production costs, market trends, and the overall well-being of farmers. MSP for each crop is determined in the following way:...

Minimum Support Price (MSP) is Announced by the Government to Provide

Financial security to farmers by ensuring a minimum price for their produce. A safety net against fluctuating market prices. Incentives for the production of specific crops....

Minimum Support Price (MSP) UPSC

A critical topic for UPSC aspirants, covering agricultural policies and their socio-economic impacts. Examines the role of MSP in ensuring food security and supporting rural livelihoods. Analyzes the implications of MSP on India’s agricultural economy....

Minimum Support Price (MSP) of How Many Crops are Fixed

MSP is currently fixed for 23 crops, including cereals, pulses, oilseeds, and commercial crops. Aimed at encouraging diversified crop production....

The Minimum Support Price (MSP) for Food Grains was Introduced in the Year

MSP was introduced in 1966-67 as part of India’s Green Revolution strategy. Initially focused on wheat, it has since expanded to include other food grains....

What is Minimum Support Price MSP and How is it Being Implemented in Your Area?

Implementation varies regionally, with state governments and local agencies playing key roles. Involves procurement centers where farmers can sell their crops at MSP rates....

Why is Minimum Support Price (MSP) for Crops?

To stabilize the agricultural market and ensure fair prices for farmers. Encourages production of essential crops to achieve food self-sufficiency....

Increase in Minimum Support Price (MSP) for Rabi Crops in 2023

Reflects government efforts to promote rabi crop production amid changing market demands. Adjustments made based on inflation, production costs, and market trends....

Who Decides the Minimum Support Price (MSP) for Agricultural Crops in India

The MSP is decided by the Government of India, based on recommendations from the Commission for Agricultural Costs and Prices (CACP). Takes into account factors like cost of production, demand-supply dynamics, and overall economic conditions....

Minimum Support Price List

Includes essential crops like wheat, paddy, maize, various pulses, oilseeds, and cotton. Updated annually to reflect changes in the agricultural sector....

MSP Minimum Support Price

A crucial component of India’s agricultural policy framework. Ensures economic stability for farmers and contributes to the overall goal of agricultural sustainability....

Crops Eligible for MSP (Minimum Support Price)

At present 23 commodities are included in MSP. These are as follows:...

Challenges Faced during MSP (Minimum Support Price)

There are a lot of challenges that have to be faced during MSP. These are as follows:...

Incorporating MSP (Minimum Support Price) in Agricultural Strategies

Involve farmers’ organizations and other stakeholders in the MSP decision-making process. While MSP is Important, it should be integrated with agricultural market reforms , so that balance can be maintained between ensuring fair incomes for farmers and market efficiency. Expand the list of crops eligible for MSP to include more non-cereal crops, especially perishable commodities like fruits, vegetables, and horticultural products that will help in promoting crop diversification. Consider regional variations in MSP to account for diverse agro-climatic conditions, production costs, and market dynamics. Invest in procurement and storage infrastructure to minimize post-harvest losses, ensure timely procurement, and provide farmers with easy access to government procurement centers....

Minimum Support Price (MSP) UPSC – FAQs

For which crops is MSP announced?...