(The Gist of Kurukshetra) Minimum Support Price (MSP)

[MARCH-2018]

Minimum Support Price (MSP)

MSP is a tool of market intervention by the Government of India to ensure the farmers from any sharp fall in the market price of a commodity. While the structural reforms of agriculture takes time to trickle down the effect on the grass root level, the increase in Minimum Support Price has immediate effects on the farmers income, agricultural productivity & growth. Addressing the issue of agrarian distress of farmers in India, the Union Budget has ensured MSP for all 23 crops With at least one and half times of their production cost (A2) plus the imputed value of family labour at prevailing wage rate (FL). Cost A2 includes all expenses paid by farmers in cash or kind in production of the crop like seed, fertilizer, mansure, chemical, hired human, bullock and machine labour, irrigation expenses, maintenance cost, etc.

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Courtesy: Kurukshetra