Minimum Support Price (MSP)

Minimum Support Price (MSP) is the lowest price that the government guarantees to pay to farmers for their crops, regardless of market fluctuations. It ensures farmers receive a fair return and encourages them to produce essential crops without the fear of being unable to sell at a minimum price. MSP helps stabilize farmers' income and provides some security against crop price volatility in the market. It is usually announced annually for various crops to promote agricultural stability and support farmers’ livelihoods.