What is Minimum Support Price (MSP)?

Minimum Support Price (MSP):

• Concept: Guaranteed price set by Government of India to purchase agricultural crops directly from farmers, protecting them against distress sale.
• Recommendation: Recommended by Commission for Agricultural Costs and Prices (CACP) for 22 mandated crops plus Fair & Remunerative Price (FRP) for sugarcane.
• Formula: Fixed at minimum 1.5 times the cost of production (A2+FL formula).