MSP: Minimum Support Price
MSP Full Form
MSP full form stands for Minimum Support Price. The Minimum Support Price (MSP) is the price of an agricultural product purchased by the Government of India directly from a farmer.
By definition, this rate is to protect the farmer from the minimum benefit of the crop, if the price in the open market is less than the cost. The Government of India fixes the prices of 23 items twice a year. It is not enforceable by law.
Calculating MSP
The MSP has been constituted since 2009 on the recommendations of the Commission on Agricultural Costs and Prices. Since 2009, based on a commission on agricultural costs and prices, the MSP of the crop determines:
- cost of production
- supply
- price fluctuations
- different costs and
- international market prices
- agricultural wage rate
- demand
- market price trends
What Is The Full Form Of MSP?
MSP full form stands for Minimum Support Price. It is the price of an agricultural product purchased by the Government of India directly from a farmer. This rate is to protect the farmer from the minimum benefit of the crop if the price in the open market is less than the cost. The MSP has been constituted since 2009 on the recommendations of the Commission on Agricultural Costs and Prices.
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