Question
Write notes on:
Minimum support price

Answer

Minimum Support Price
  1. The Food Corporation of India (FCI) purchases wheat and rice from the farmers in states where there is surplus production.
  2. The farmers are paid pre-announced price for their crops. This price is called Minimum Support Price (MSP).
  3. The MSP is declared by the government every year before the sowing season to provide incentives to the farmers for raising production of these crops.

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