What is the full form of MSP

MSP: Minimum Support Price

MSP stands for Minimum Support Price. The minimum support price (MSP) is an agricultural product price set by the Government of India to purchase directly from the farmer. This rate is to safeguard the farmer to a minimum profit for the harvest, if the open market has lesser price than the cost incurred.

The major objectives are to support the farmers from distress sales and to procure food grains for public distribution.

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.

Every year during the budget central government decide a price for all the crops produced by Indian farmers in different part of India. The commodity includes rice, wheat ,cotton, Soybean, mustard corn etc.