A.11. Minimum Support Price
MSP is the minimum price that the government pays for the farmers’ produce at the time of procurement. It is aimed at saving the crops from price fluctuations in the market.
The MSP fixed by the government is considered as being remunerative for farmers.
However, MSPs do not have legal backing.
MSPs were first introduced in 1966-67 when the country adopted Green Revolution technologies. To boost domestic production and encourage farmers to plant high-yielding varieties, the government resorted to MSP. A minimum support price was guaranteed to them.