Minimum Support Price -The MSP is the rate at which the gover | UPSC Civil Services (IAS)
Minimum Support Price
-The MSP is the rate at which the government buys grains from farmers.
-Reason behind the idea of MSP is to counter price volatility of agricultural commodities due to the factors like variation in their supply, lack of market integration and information asymmetry.
-Fixation of MSP: The MSP is fixed for 23 crops based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), Ministry of Agriculture
