What is Minimum Support Price (MSPs) ?

Defination:
  • The Minimum Support Price (MSP) Scheme is a scheme of the Government of India (GOI) to safeguard the interests of the farmers.
  • These are the minimum prices offered by the Government to buy food grains from the farmers in any case.  
  • Under this Scheme the GOI declares the minimum support Prices of various agricultural produces and assures the farmers that their agricultural produce (of FAQ) will be purchased at the MSP, thereby preventing its distress sale. 
  • The Food Corporation of India (FCI) acts as the Nodal Agency of the GOI. On behalf of FCI, in Maharashtra, the MSP Scheme is implemented through the State agencies. 
  • It provides security to the farmers in the case of fluctuations in the market. 
  • It is generally announced before sowing the crop.