MSP does not have any legal backing till now and farmers can't | ECONOMY by VIVEK SINGH

MSP does not have any legal backing till now and farmers can't demand it as a legal right. It is just government policy and an administrative decision to purchase some food grains at MSP. And govt can't even force private players to procure at MSP.

Among several criteria for recommending the MSP, the most important one is the cost of production and margin/profit on it. Govt. promises minimum 50% over cost of production (All-India weighted average Cost of Production). MSP is same for all over India.

Govt. announces MSP before the sowing season.