MSP FULL FORM

Full Form of MSP : Full Form of MSP is Minimum Support Price.

What is the full form of MSP ?

No:1. The full form of MSP is Minimum Support Price.
No:2. It is commonly known as the way of protecting the farmers in India from the uncertainties of the markets as well as those of the natural kind.
No:3. It is the core of the agricultural revolution that saw India transforming from a food-deficient to a food-surplus nation.
No:4. Over the years, the MSP has helped the farmers in India to stave off the effects of financial fluctuations.
No:5. It has become a major talking point after the farmers’ protests reached the national Capital.

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When was the MSP introduced in India?

No:1. India was staring at a major deficit in terms of cereal production at the time of Independence.
No:2. After struggling in the 1^st decade, India decided to go for extensive agricultural reforms .
No:3. It was the 1^st time in the year 1966-67 that the MSP ( Minimum Support Price) was introduced by the Centre.
No:4. At Rs 54 per quintal, the MSP for wheat was fixed for the 1^st time.

What was the need of introducing the MSP in India?

No:1. On the path of the Green Revolution, Indian policymakers realised that the farmers needed incentives to grow food crops.
No:2. They would not choose for the crops such as wheat and paddy as they were labour-intensive and did not fetch profitable prices.
No:3. Therefore, to incentivise the farmers and boost production, the MSP was introduced in the 1960’s.

Crops cover under the MSP

At present, the Centre provides the MSP for 23 crops. These include

Cereals crops such as

a). bajra
b). wheat
c). maize
d). paddy barley
e). ragi and jowar

Pulses like

a). tur
b). chana
c). masur
d). urad and
e). moong;

Oilseeds such as

a). safflower
b). mustard
c). niger seed
d). soyabean
e). groundnut
f). sesame and
g). sunflower.
The MSP also covers commercial crops of raw jute, cotton, copra and sugarcane.

How the Government decides on the MSP?

No:1. In India, there are 2 major cropping seasons, namely ‘Rabi’ and ‘Kharif’.
No:2. The government announces the MSP at the start of each cropping season.
No:3. The MSP is decided after the government exhaustively studies the major points made by the Commission for Agricultural Costs and Prices.
No:4. These recommendations are based on some pre-fixed formulae. This includes the actual cost incurred, implicit family labour as well as the sot of fixed assets or rent paid by the farmers.
No:5. These variables are called A2, FL and C2. The MSP is calculated by the government by often adding all these.
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