Agri-Business

Minimum Support Price: A matter of definition

A farmer at work on the field | File photo  

The government has agreed to fix the Minimum Support Price (MSP) at 50% more than the production cost incurred by the farmer in kharif crops.

But, there is a marked difference between what the government considers as the cost of production and what the farmer incurs.

Here's a look at the difference in definition, how much each crop loses because of this difference and how frequently the Centre changes the MSP.

1

The below table shows that the gap between promised and calculated MSP is highest for dal varieties Moong, Urad and Arhar.

Asset 2

The below chart depicts the relationship between MSP and years when there was a Lok Sabha election.

Asset 3
 


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Printable version | Nov 20, 2021 1:10:30 PM | https://www.thehindu.com/business/agri-business/msp-definition/article24370556.ece

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