MSP or Minimum Support Prices is a price guarantee for the crops by the government to the farmers. It is done so that if there is a price drop in the crop, the farmers are not at great losses.
The government is likely to announce Minimum Support Prices only for the Kharif crop, as the agriculture is in the Kharif Season.
The farmers are distressed because of the falling profit margins and so the MSP rise is necessitated.
After the food shortage in the 1960s, because of drought that lasted for years, policies like food stock reserving, Minimum Support Prices for various commodities, and selling grains at the subsidized rates to the poor were initiated.
The government fixes MSP for 22 crops(14 Kharif, 6 Rabi, 2 Commercial Crops). The Commission of Agricultural Cost and Prices (CACP) recommends the Government on price setting.
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